THE WHAT? Oak Street Real Estate and Kohl’s are said to be in talks with a view to the former buying the latter’s property portfolio for up to US$2 billion, according to a report published by Reuters quoting sources ‘familiar with the matter’. The US retailer would then lease back its stores.
THE DETAILS Further details are yet to be ironed out, says Reuters, and the exact number of Kohl’s 1,100 stores covered under the terms is yet to be determined. Oak Stret declined to comment when approached by Reuters while Kohl’s could not be reached.
THE WHY? Kohl’s had hoped to sell its business to Franchise Group over the summer but the deal fell through. A potential real estate sale to Oak Street would allow Kohl’s to cash out the equity in its property portfolio.