Brookfield Property Group and Simon Property Group have agreed to acquire the retail and operating assets of J.C. Penney Co. for $1.75 billion at a bankruptcy auction.
The agreement contemplates the formation of a separate real estate investment trust and a property holding company (PropCos), which will include 161 of the company’s real estate assets and all of its owned distribution centers.
“We have determined that an agreement with Brookfield and Simon, as well as the formation of separate real estate investment trusts owned by our First Lien Lenders, is the best path forward to maximize value for our stakeholders, ensure we keep the most stores open and associates employed, and position JCPenney to build on our over 100-year history,” said Jill Soltau, CEO of JCPenney. “The interest in our operations reflects our company’s strength and our loyal customer base. It is a testament to the hard work and dedication of our talented associates and the progress we
