Sears Canada to sell half of real estate ownership for CAD315 million
Sears Canada Inc.'s 50% stake in eight Canadian properties had been put up for sale for about CAD315 million (USD300.30 million). The beleaguered department store chain said it would be selling its interest in four regional shopping centers, two strip centers and two open-air retail centers to Montez Income Properties Corp. News of the deal came after Sears Holdings Corp., Sears Canada's parent, said it would shutdown its flagship downtown Toronto store. Sears Holdings also ended leases on four other locations in a CAD400 million deal, a Reuters report said.
The Canadian retailer suffered sharp declines in same-store sales and had lost market share against US competitors Wal-Mart Stores Inc. and Target Corp.
Meanwhile, Reuters said that Sears Canada partner The Westcliff Group of Companies would continue to hold its 50% stake and exclusively manage the eight properties.
Sears Canada said that it was expecting to seal the deal with Montez on January 8.
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