NEW YORK CITY-Major Target Corp. investor Pershing Square Capital Management has proposed to the retailer that it spin off its real estate holdings and facilities management into a Target Inflation-Protected REIT, which would then enter 75-year, triple-net lease deals for the stores.

The deal, if accepted by Target and approved by shareholders, would form the largest real estate investment trust in the country, with an estimated market value of $27.5 billion. (Simon Property Group is second at $20.8 billion.)

“By going public with this, we can get feedback from the shareholders,” as will Target, said William A. Ackman, Pershing Square’s fund manager.

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