Macy’s signs real estate deal with Brookfield

Macy’s, Inc. and Brookfield Asset Management have signed a two-year agreement giving Brookfield the right to redevelop or add onto 50 Macy’s properties, as part of the department store chain’s efforts to generate money from its real estate.

Work at the sites would range from construction on an adjacent undeveloped parcel owned by Macy’s to redevelopment of an entire store, according to a statement issued by Macy’s. “These assets primarily include owned and ground- leased stores and associated land, most of which are located in malls not owned by major mall owners,” according to a statement from Macy’s Inc. The agreement allows for Macy’s to add additional properties into the agreement.

“We have real estate assets with significant value creation opportunities, and we believe that partnering with a leading global real estate investor like Brookfield is the best way to unlock the potential of those assets,” said Terry J. Lundgren, Macy’s, Inc. chairman and CEO. “The Brookfield alliance strengthens our ability to improve the customer shopping experience by giving us greater flexibility to invest in our most productive and highest-potential locations, and to make the most of our real estate assets, or portions of them.”

In a separate deal last month, General Growth Properties paid $46 million for five Macy’s department stores as part of an effort to boost the productivity of anchor spaces at its shopping centers. The stores are at Carolina Place (in Pineville, N.C.), Greenwood Mall (Bowling Green, Ky.), Quail Springs Mall (Oklahoma City), Oakwood Mall (Eau Claire, Wis.) and Tysons Galleria (McLean, Va.)

Macy’s is also exploring options for its flagship locations, and plans also to close about 100 stores. The company owns 880 stores in 45 states, the District of Columbia, Guam and Puerto Rico under the names of Macy’s, Bloomingdale’s, Bloomingdale’s Outlet, Macy’s Backstage and Bluemercury.