Seritage considers strategic alternatives for better shareholder value – Commercial Observer
Serage growth propertiesthe real estate investment company that was born sear in 2015 underwent a major management change and said on Tuesday it was exploring “a wide range of strategic alternatives”.
Seritage, a nationwide owner and developer of 170 residential, commercial and mixed-use properties, announced that its Chairman, Edward Lamperthad retired with immediate effect and that the CEO Andrea Olshan, who took on this role last year, would become president. In addition to Lampert, board members David Fauver and Thomas Steinberg said they would not seek re-election.
In anticipation of Lampert’s retirement, the real estate investment trust created a special committee of the company’s board of directors to explore options to reconcile the gap between the value of the company’s durable assets and the its share price, which was trading at around $11 per share on Tuesday afternoon. .
“Board and management believe there is a permanent disconnect between the company’s share price and net asset value,” Olshan said in a statement. “The opportunities for these underlying assets are extremely strong, and we believe embarking on this process represents the most effective way to unlock the full potential of this portfolio.”
The company has worked over the past year to diversify its tenant base as part of the strategic alternatives, Olshan said, injecting high-quality technology offices, life sciences and medical businesses into the mix. The committee has chosen Barclays as financial advisor for the restructuring effort.
“I have decided to retire to allow myself more time to focus on my other investments and to give me greater flexibility to explore alternatives for my investment in Seritage, which could include involvement with likely parties to be interested in acquiring [a certain amount] company assets and trading shares in open market transactions,” Lampert said in a statement.
As of September 2021, Lampert owned 22% of the company’s stock and served as Chairman of Sears (while serving as CEO of Seritage) when filing for bankruptcy. Seritage said it no longer has Sears and Kmart as major tenants.
Beyond personnel changes,end of 2021Seritage has announced that it will sell the 11-acre site of the former Landmark Mall in Alexandria, Virginia, in which the REIT has entered into a joint venture with Foulger–Pratt and the Howard Hughes Society. The trio sold the land to the city of Alexandria Industrial Development Agency for $54 million.
Marc Hallum can be contacted at [email protected].