New Hyde Park, NY — A joint venture between Kimco Realty Corp., Simon Property Group and the Schottenstein Group won designation rights for all the real estate interests of defunct department store chain Montgomery Ward.
These interests consist of 250 former Montgomery Ward retail stores and other operating real estate assets, Kimco announced. All in all, the designation rights include 315 separate fee simple and leasehold property interests.
The venture agreed to purchase the designation rights — which enable the companies to direct the disposition of fee and leasehold positions held by the bankrupt estate — for an initial price of $60.5 million, Kimco announced.
However, under the terms of the asset purchase agreement, that price might ultimately exceed $435.5 million, the company announced. During the marketing period Kimco and its partners will be responsible for all carrying costs associated with operating the properties until a site is designated to a user.
Kimco, a publicly traded real estate investment trust based in New Hyde Park, has specialized in shopping center acquisitions, development and management for more than 30 years. It owns and operates the nation’s largest portfolio of neighborhood and community shopping centers, with interests in 495 properties in 41 states. Schottenstein Stores of Columbus, Ohio, owns Filene’s Basement and Value City department stores.