Sears Canada leases back three stores

Toronto - Sears Canada Inc. has entered into a definitive agreement with Concord Pacific Group of Companies to sell and lease back three of its properties for $140 million. The after-tax proceeds, including adjustments, will be approximately $130 million.



The locations include store space and adjacent property located at the Metropolis at Metrotown in Burnaby, British Columbia, Cottonwood Mall in Chilliwack, British Columbia and North Hill Shopping Centre in Calgary, Alberta. The transaction is scheduled to close on or about June 8, 2015.



Sears will continue to operate the stores located at these shopping centers under long-term leases and there is no impact on customers or Sears employees in these locations.



"The agreement with Concord is a great way for Sears Canada to create value from its network without adversely impacting operations," said Ron Boire, president and CEO, Sears Canada. "This transaction will strengthen our financial position as we continue to implement initiatives designed to make Sears successful."



Sears initially announced it would explore selling and leasing back stores to monetize its real estate holdings in November 2014.