Warren Buffett has recently built up a stake of 8% of Seritage Growth Properties (Ticker: SRG). This is the Sears REIT (Real Estate Investment Trust) that was spun off of Sears Holdings (Ticker: SHLD). Now I bet your asking yourself, “Why did Warren Buffett buy this REIT?” The answer is simple. Seritage has the bulk of Sears’ properties under its belt and it has the ability to kick Sears out of the real estate and re-lease it out for $18 dollars a square foot, while Sears Holdings only pays $5 dollars a square foot. This makes Seritage an easy play to make. Right now Seritage Growth Properties shares are at $41 dollars each. If Seritage is able to re-lease out the substantially holdings of Mall stores it has then the shares are worth substantially more.
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