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Buffett’s Berkshire Loans $2B to Seritage Properties
Warren Buffett’s Berkshire Hathaway is granting a $2 billion loan to Sears’ spin-off real estate investment company, Seritage Properties. Started by Sears in 2015, Seritage owns 249 properties, of which about 230 were leased back to Sears and Kmart.
With the funds, Seritage plans to pay off an outstanding mortgage loan and unsecured term loan. Additionally, Seritage will use the money to redevelop properties that are currently leased out to Sears. With hundreds of Sears stores closing this year, Seritage will have the opportunity to lease the real estate to other businesses.
Buffett personally owns a 5.7% stake in Seritage Properties, and according to the Wall Street Journal, he says he owns stock because it doesn’t overlap with Berkshire Hathaway’s business. This year, Seritage’s stocks are up 19%.
For comments, questions or concerns, please contact Daniella Soloway
