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|Macy’s, Inc. Forms Strategic Alliance with Brookfield Asset Management to Expand Opportunities to Enhance Real Estate Portfolio Value|
Brookfield’s investments in real estate span all major sectors - retail, office, multi-family, industrial and hospitality. Brookfield is one of the few firms with both the capital and the operating capability required for this type of partnership. Together, the companies believe they will be able to realize the development potential of Macy’s portfolio.
(Editor’s Note: Macy’s, Inc. today also issued a separate news release announcing third quarter 2016 earnings, reaffirming full-year 2016 EPS guidance and raising full-year sales guidance.)
Under the alliance, Brookfield will have an exclusive right for up to 24 months to create a “pre-development plan” for each of approximately 50 Macy’s real estate assets, with an option for Macy’s to continue to identify and add assets into the alliance. These assets primarily include owned and ground- leased stores and associated land, most of which are located in malls not owned by major mall owners. The breadth of opportunity within the portfolio ranges from the additional development on a portion of an asset (such as a Macy’s-controlled land parcel adjacent to a store) to the complete redevelopment of an existing store.
“We have real estate assets with significant value creation
opportunities, and we believe that partnering with a leading global real
estate investor like Brookfield is the best way to unlock the potential
of those assets,” said
“We are pleased to partner with Macy’s on this important initiative,”
The Brookfield alliance is part of Macy’s previously-announced strategy to generate value from its real estate portfolio consistent with the company’s commitment to stores as a critical element of its long-term omnichannel strategy and its balance sheet objectives. The company is also exploring options for its flagship stores and closing approximately 100 full-line Macy’s stores due to underperformance or because the value of the real estate exceeds the value to Macy’s as a retail store location.
Eastdil Secured and
Macy’s, Inc., with corporate offices in
All statements in this press release that are not statements of
historical fact are forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Such statements are
based upon the current beliefs and expectations of Macy’s management and
are subject to significant risks and uncertainties. Actual results could
differ materially from those expressed in or implied by the
forward-looking statements contained in this release because of a
variety of factors, including conditions to, or changes in the timing
of, proposed real estate and other transactions, prevailing interest
rates and non-recurring charges, store closings, competitive pressures
from specialty stores, general merchandise stores, off-price and
discount stores, manufacturers’ outlets, the Internet, mail-order
catalogs and television shopping and general consumer spending levels,
including the impact of the availability and level of consumer debt, the
effect of weather and other factors identified in documents filed by the
company with the
(NOTE: Additional information on Macy’s, Inc., including past news releases, is available at www.macysinc.com/pressroom)
Source: Macy’s, Inc.