SRG - Seritage Growth Properties

[LongTermView]

http://ir.seritage.com/file/Index?KeyFile=393586630

SERITAGE GROWTH PROPERTIES AND FIRST WASHINGTON REALTY ANNOUNCE PARTNERSHIP TO OWN THE CORBIN COLLECTION IN WEST HARTFORD, CONNECTICUT
Company Release - 5/21/2018 4:59 PM ET
NEW YORK--(BUSINESS WIRE)-- Seritage Growth Properties (NYSE:SRG) and First Washington Realty, a national real estate investment and management company, today announced a joint venture partnership to own The Corbin Collection, the 163,700 square foot redevelopment of the former Sears store and auto center in West Hartford, Connecticut.

The transaction values The Corbin Collection at approximately $52 million, including costs remaining to complete the project. Seritage sold a 50% interest in the project to an affiliate of First Washington Realty, and received proceeds of approximately $23 million at closing, which it utilized primarily to repay existing mortgage debt associated with the property.

[LongTermView]

Pretty big announcements the last few days. It's kind of surprising there isn't more talk about them here.

http://ir.seritage.com/file/Index?KeyFile=393597384

SERITAGE GROWTH PROPERTIES AND INVESCO REAL ESTATE ANNOUNCE PARTNERSHIP TO OWN THE COLLECTION AT UTC IN LA JOLLA, CALIFORNIA
Company Release - 5/22/2018 9:12 AM ET
Joint Venture to Redevelop Former Sears Site into Premium Shopping, Dining and Entertainment Destination

NEW YORK--(BUSINESS WIRE)-- Seritage Growth Properties (NYSE: SRG) and Invesco Real Estate, a global real estate investment manager, today announced a joint venture partnership to own The Collection at UTC, the adaptive re-use of the existing Sears store and auto center at Westfield UTC in La Jolla, California.

The transaction values The Collection at UTC at approximately $165 million, including costs remaining to complete the project. Seritage sold a 50% interest in the project to a separate account managed by Invesco and received proceeds of approximately $44 million at closing, which it utilized primarily to repay existing mortgage debt associated with the property. The partnership will invest, or pursue construction financing to fund, the additional capital required to convert the Sears store and auto center into 226,200 square feet of premium space leased to a collection of growing retailers and leading dining, entertainment and fitness concepts.

[cubsfan]

I don't think anyone wants to hear about anything to do with Sears.

Like Brookfield, I think Seritage is going to be a good one. These announcements are under the radar,
No conference calls, non-promotional management.

Add in a short position of 50% of the float - and you get a pretty combustible mix if good news arises.
If the hedge funds are so short Seritage because of the "Sears is dying story" they'll have a tough
time covering as Sears continues to come up with creative ways to finance the company.

[scorpioncapital]

One thing I admire about buffett is the ability to think a few moves ahead. It's like chess. Now times are good for some companies, over time, the race will be won by making the right moves. Can mistakes be made? Sure. IBM for example. But in investing there are BIG mistakes and small mistakes. You can switch horses if you feel a better one comes around. If you cover your bases, the loss on the underperformer won't be too bad. In other words there is time to decide your optimal portfolio.

[Broeb22]

https://www.businesswire.com/news/home/20180529005568/en/Seritage-Growth-Properties-Announces-Appointment-Sharon-Osberg

Buffett's bridge buddy joining SRG board a coincidence?

No position here, but I would find it surprising that a person Buffett plays bridge with 3-4x per week would not be some kind of connection to the board for Buffett...

[LongTermView]

Good, maybe Warren and Sharon can get them to lower the dividend or cut it completely for a few years.

[cubsfan]

Not likely to see a dividend cut since it will endanger the REIT status.

[LongTermView]

Not likely to see a dividend cut since it will endanger the REIT status.

I was under the impression they have some room since their earnings are near zero.

[Foreign Tuffett]

https://www.businesswire.com/news/home/20180529005568/en/Seritage-Growth-Properties-Announces-Appointment-Sharon-Osberg

Buffett's bridge buddy joining SRG board a coincidence?

No position here, but I would find it surprising that a person Buffett plays bridge with 3-4x per week would not be some kind of connection to the board for Buffett...

My thoughts exactly......

[cubsfan]

Not likely to see a dividend cut since it will endanger the REIT status.

I was under the impression they have some room since their earnings are near zero.

I'm sorry - I thought you meant they should cut dividend to zero!