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William Ackman, a 10% shareholder of the discounter, thinks so. The head of Pershing Square Capital Management is proposing that Target spin off its company-owned stores and land into an Inflation-Protected REIT.Its real estate would then enter a 75-year triple-net-lease-deal for the stores. Ackman says TIP REIT, as he calls it, would be the largest of its kind, with its $27.5-billion market value eclipsing Simon Property Group’s $20.8 billion.“This is a great business, a great retailer and a great management team,” Ackman said. “I’d much rather own the land under Target than some of the paper issued by the US government. TIP REIT will have better and cheaper access to capital than any other retailer and any REIT.”The last time we reported on the website-less Pershing (C’mon y’all, get a site! You can afford it!) was when the firm invested $42.5 million into Borders. There was speculation then that Ackman would try to acquire the bookseller. That hasn’t happened.So will he have better luck with this proposal? Does it make sense? Should other retailers consider such a structure?

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