Sears Canada announces more real estate sales, including warehouses

Sears Canada continues to sell off its real estate in Canada to raise cash and restructure its retail operations.

It has sold a distribution centre in Vaughan, Ont. for $100 million and another one in an undisclosed city, most likely Regina, with a vacant property beside it for $28 million.

Brandon G. Stranzl, Sears executive chairman, called the real estate sold "non-core" assets which could "create value for the company."

Sears Canada entered an agreement with Tamworth Properties Inc. to lease back the distribution centre in Vaughan in what a spokesman said would be a long-term lease.

It also agreed to sell another unnamed distribution centre, which it has already closed, for $8.5 million.

Earlier this year it sold three retail properties in Burnaby and Chilliwack, B.C., and in Calgary. to Concord Pacific Real Estate Developments for $140 million. On Friday, it announced plans to partner with Concord to develop other properties, again not specifying where.

A Sears spokesman said the locations of the sold real estate would not be divulged until sales close, but a Sept. 2 filing lists Regina as the location of one property to be sold.

Sears recently appointed former Nine West executive Carrie Kirkman as president charged with restoring Sears Canada's core retail business.

In its second quarter earnings report, it said same-store sales had improved 3.9 per cent in the past year.

The Canadian department store chain is 48 per cent owned by U.S. Sears head Eddie Lampert and has been selling off real estate for the past two years to raise cash.

Sears Canada continues to operate 166 corporate stores, 177 Hometown stores and 84 Sears Travel offices as well as an online ordering service in Canada.