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 PropertyGroup is second at $20.8 billion.)
"By going public with this, we can get feedback from theshareholders," as will Target, said William A. Ackman, PershingSquare's fund manager.
Minneapolis-based Target owns approximately 85% of the landunderneath its stores, which is a greatly misunderstood andundervalued asset, said Ackman. The move would free the retailcompany from the tax and management responsibilities of landownership. The REIT meanwhile, would be unlevered, and serve asTarget's exclusive land developer for two years, and as itspreferred developer thereafter.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
*May exclude premium content
Already have an account?
Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
