Center Owners Speak Out on Kmart-Sears Merger

Ian Ritter is national online editor of GlobeSt.RETAIL.

NEW YORK CITY-Open-air center and mall owners had different takes on the Kmart-Sears merger during two separate panel discussions in Manhattan yesterday as part of the Deutsche Bank Securities Real Estate Outlook Conference.

Sears Holding Corp., which the two companies expect to create in an $11 billion deal by the end of March, will likely close a significant amount of stores, said open-air center owners. “A lot of real estate will go on the market,” said Glenn Rufrano, CEO of locally based New Plan Excel Realty Trust. “I think both of them are poor retailers that are trying to figure out their business.” He predicted that the companies will put up for sale 500 of the 3,500 units owned by the new entity.