SRG - Seritage Growth Properties

[tylerdurden]

I might be wrong but If Sears goes bankrupt tomorrow, SRG might end up getting many properties from Sears right away rather than gradually as the way it is set up now. I think they have to pay the costs of all these properties like utilities, property taxes perhaps etc. so that was a potential concern for some contributors on this forum before. In that type of scenario it might also be tougher to find JV partners as well since there will be a lot of properties going into a market which might be already oversupplied because of what's going on with the retail these days.

According to Simon and Macerich they are just waiting on SRG to do more joint ventures and they are very pleased with the current SRG JVs (the CEOs of both have commented on this publicly) so I don't believe there is a lack of interest from JV partners for SRG re-development projects.  I believe that SRG is trying to avoid going that route and is trying to hold on to all of as many properties as they can.

Understood. Good point. JV partners would be interested with higher quality assets anyways so as long as SRG provides them those better quality assets, they'd be happy campers I suppose.

[BTShine]

The Aventura Mall (Miami/Bal Harbour) Development is going through.  Here are some pieces of an article on it.  As many know this is a valuable piece of dirt for Seritage.

The South Florida Business Journal has confirmed that the Sears near the Aventura Mall will begin its liquidation sale April 28 and close for business in mid-July.

The site at 19505 Biscayne Blvd. in Aventura will be the location of a major project as the property owner, Seritage Growth Properties (NYSE: SRG), begins construction on Esplanade at Aventura, a large mixed-use development.


A Kmart on property that Seritage also owns at 1460 W. 49th St. in Hialeah will begin its liquidation sale April 27 and also close in mid-July.

Seritage has not yet revealed its plans for the Kmart site, but aims to start construction by the end of the year on Esplanade at Aventura, which the real estate investment trust bills as a "world-class shopping and dining destination."

The first phase of Esplanade at Aventura will total approximately 215,000 square feet of retail, restaurant and entertainment venues and is expected to break ground later this year. There is not yet information available about how many jobs the project would create.

"The Esplanade at Aventura is poised to deliver long-term value to the community through an enhanced retail experience and the creation of a substantial number of jobs," said Jason Chudoba, a spokesman for Seritage. "We appreciate the support we have received from the city of Aventura and the community, and look forward to sharing further updates in the near future."

Aventura officials granted Seritage site plan approval for the project in December 2016. Recapturing the lease from Sears was a step forward for the Esplanade project.

Earlier this year, Sears Holdings Corp. (Nasdaq: SHLD) announced the completion of a sale of 235 Sears- and Kmart-branded stores to Seritage along with other holdings, effectively spinning off the properties into Seritage, which began trading on the New York Stock Exchange on July 6, 2015.

Under that agreement, Seritage has the right recapture some properties, and did so with both Sears in Aventura and Kmart in Hialeah.

[doughishere]

Could you link the article?

[gfp]

http://www.bizjournals.com/southflorida/news/2017/04/06/sears-store-near-aventura-mall-kmart-in-hialeah.html

Could you link the article?

[BargainValueHunter]

Barron's turns bullish on Lampert:

http://www.barrons.com/articles/lamperts-seritage-strategy-could-lead-to-long-term-gains-1492836691

Pabrai doesn’t think an equity raise is likely; he says Seritage will have no trouble lining up private capital. In addition to Lampert, he ticks off a list of potential investors that could include Berkshire Hathaway, Bill Ackman’s Pershing Square, and Cascade Investment, Bill Gates’ investment vehicle.

He puts the maximum capital raise at $1 billion, followed by $1 billion over a few years for redevelopment projects. The big risk for current shareholders would be the extent of any potential dilution. That, too, could lower the long-term stock opportunity.

[tylerdurden]

According to this week's Barron, Mohnish Pabrai sold all SRG shares.

My conviction on this name quadrupled now just based on this development:-)

I think he sold Southwest in a short period of time too so I guess he is losing his patience a little bit these days...

[glorysk87]

According to this week's Barron, Mohnish Pabrai sold all SRG shares.

My conviction on this name quadrupled now just based on this development:-)

I think he sold Southwest in a short period of time too so I guess he is losing his patience a little bit these days...

reading between the lines it seems that he plans on buying back in once SHLD files and SRG ostensibly gets hit hard.

[BTShine]

Buffett still holds.

[tylerdurden]

According to this week's Barron, Mohnish Pabrai sold all SRG shares.

My conviction on this name quadrupled now just based on this development:-)

I think he sold Southwest in a short period of time too so I guess he is losing his patience a little bit these days...

reading between the lines it seems that he plans on buying back in once SHLD files and SRG ostensibly gets hit hard.

"I might take another bite at the apple" that's what he says so if SHLD files before 2019-2020 according to his estimates he might get a better deal. If not, perhaps no mo SRG apple for Mr Pabrai.

[Gamecock-YT]

I think he sold Southwest in a short period of time too so I guess he is losing his patience a little bit these days...

Maybe he did a bit of research and realized their talk of flying to Europe was an absolute pipe dream.