Macy’s taps Tishman Speyer, rules out REIT spinoff

Department store giant, developer may collaborate again after Downtown Brooklyn deal

TRD New York /
Nov.November 12, 2015 03:45 PM

While ruling out a real estate investment trust spinoff of its real estate assets, department store giant Macy’s tapped Tishman Speyer to help formulate a real estate strategy that could include store redevelopment projects nationwide.

Macy’s real estate portfolio is valued in the billions, and the company had weighed the possibility of spinning off those assets into a real estate investment trust.

But the department store chain concluded that a potential REIT strategy doesn’t offer enough upside for value creation, according to CoStar — though it “may revisit this alternative in the future,” it said in its third quarter earnings report.

As part of the new relationship, Macy’s may ask Tishman Speyer to bid on some of its redevelopment projects, it said. The developer is already helping the retailer at its Downtown Brooklyn location at 422 Fulton Street — which Tishman Speyer acquired for $170 million earlier this year and plans to redevelop into offices and a smaller retail space for Macy’s.

Macy’s also said it has already begun a process to explore joint ventures and other deal structures to redevelop real estate assets, including its massive Herald Square location. The company said it will also continue to pursue possible asset sales of properties. [CoStar]Rey Mashayekhi


Related Articles

arrow_forward_ios
Barney's at 660 Madison Avenue with Ashkenazy Acquisition Corporation's Daniel Levy (Credit: Getty Images, LinkedIn)

Barneys’ flagship Madison Avenue spot will stay open — but with a smaller footprint

Magnum Real Estate Group's Ben Shaoul (Credit: Getty Images and iStock)

Ben Shaoul uses Bitcoin to sell retail condo for $15M

(Credit: iStock)

It’s over for Barneys: Luxury retailer to be sold, stores closed

Barneys creditors want to review a revised offer that would keep stores open. (Credit: Getty Images)

Barneys creditors push plan to salvage the company

Vornado chairman Steven Roth (Credit: Getty Images)

Vornado slashes Forever 21’s rent, dimming 2020 outlook

47 Greene Street and President & CEO of Acadia Realty Trust Kenneth F. Bernstein (Credit: Google Maps)

Acadia plows ahead with $122M retail investment in Soho

A Victoria's Secret store in New York (Credit: Getty Images)

Victoria’s Secret sues WTC landlord amid store closures and layoffs

Former WeWork CEO Adam Neumann (Credit: Getty Images, iStock)

WeWork founder scrambled for $100M loan before $1.7B bailout

arrow_forward_ios