Ackman urging Target to adopt new real estate structure
October 29, 2008 04:32PM
Target in Brooklyn
Activist investor Bill Ackman is urging Target to move to a sale-leaseback model, in which Target would sell its real estate holdings to a subsidiary that would then lease the stores back to Target. Ackman argues that the move would raise the company's shares. But the property might not command as high a price in this softened market, and having to lease its stores would also increase the chain's operating costs. Target currently has stores in Brooklyn and the Bronx and will open its first Manhattan store next year.
[Post]
The Real Deal reserves the right to delete any comment it finds to be rude, obscene, racist, sexist, bigoted, irrelevant or repetitive, as well as inappropriate comments about anyone's personal appearance. The Real Deal does not endorse any comments posted on its Web site nor does it verify the veracity of comments or the identity of posters.
Comments