HOFFMAN ESTATES, IL—Seritage Growth Properties, the REIT spun off from Sears Holdings, is now listed on the New York Stock Exchange under the SRG ticker and began trading Monday morning. A rights offering to SHLD shareholders was oversubscribed and is expected to generate gross proceeds of $1.6 billion.

Proceeds from the rights offering will be used to fund a portion of the acquisition of 235 properties and 31 joint venture interests from SHLD, which is expected to close on Tuesday. Under a master lease agreement, SRG will lease back all but 11 of these properties to SHLD, with the REIT retaining the right to recapture certain space at each location to make available to third-party tenants.

The newly minted REIT's portfolio, not including its 50% share in the JV interests, runs to 42 million square feet across 49 states and Puerto Rico. It includes 140 Sears location, 84 Kmarts and 11 properties that are leased entirely to third parties. The three JVs, with General Growth Properties, Simon Property Group and the Macerich Co., are valued at $858 million combined.

From SHLD's standpoint, the completion of the spinoff means that “we will become more productive with our physical store space,” chairman and CEO Eddie Lampert said last month. He added that this will position SHLD for “long-term success consistent with our focus on our best stores, rewarding our best members and pursuing our best categories to transform Sears Holdings into a leading integrated retail membership-focused company leveraging our Shop Your Way platform.”