Seritage Growth Properties Announces Grand Opening of The Collection at UTC

Rhea-AI Summary

Seritage Growth Properties (NYSE: SRG) and Invesco Real Estate have opened The Collection at UTC in La Jolla, California, featuring its first tenant, Pacific Catch. The retail space is 88% leased or in active negotiations. This project, a transformation of a former Sears store, is part of Seritage's strategy to enhance portfolio value, aiming to include office and residential components. The joint venture began construction in May 2018, encompassing over 194,000 square feet.

Positive

• The Collection at UTC is 88% leased or under active lease negotiations.
• The redevelopment of the former Sears store is a significant milestone in Seritage's portfolio transformation.
• The project is set to enhance long-term value for shareholders.

Negative

• Potential risks remain due to declines in retail and economic conditions.
• The impact of COVID-19 on tenants could affect income and cash flow.

NEW YORK--(BUSINESS WIRE)-- Seritage Growth Properties (NYSE: SRG) and Invesco Real Estate announced today the official opening of The Collection at UTC in La Jolla, California with the grand opening of its first tenant, Pacific Catch. The project will have rolling openings of tenants throughout the fourth quarter of 2021 and the first quarter of 2022, including CB2, Blue Bottle Coffee, Ideal Image, Madison Reed and more. The Collection at UTC is 88% leased or under active lease negotiations.

“The opening of Seritage’s inaugural premier project is a significant milestone in our ongoing portfolio transformation. This redevelopment demonstrates our team’s ability to reimagine our properties to substantially enhance value for our shareholders, partners, tenants and local communities. The grand opening of The Collection is only the first phase of an exciting mixed-use project that is envisioned to include large office and residential components. The Collection is an exceptional assortment of retail, dining, office and experiential destinations, and I commend the efforts of our leasing, development and investments teams on bringing our vision to fruition,” said Andrea Olshan, President and Chief Executive Officer.

Pacific Catch is a San Francisco-based sustainable seafood restaurant with a menu inspired by cuisines from the shores of the Pacific. The restaurant takes “wave to table” approach with fresh, seasonal ingredients prepared with bold spices and sauces.

In May 2018, Seritage and Invesco Real Estate, a global real estate investment manager, announced a joint venture partnership to own The Collection at UTC. The Partnership commenced construction in May 2018 to convert the former Sears store and auto center at Westfield UTC into a diverse collection of leading retail, dining and office concepts, totaling over 194,000 square feet.

About Seritage Growth Properties

Seritage Growth Properties is a publicly-traded, self-administered and self-managed REIT with 147 wholly-owned properties and 25 unconsolidated properties totaling approximately 24.9 million square feet of space across 39 states and Puerto Rico. The Company was formed to unlock the underlying real estate value of a high-quality retail portfolio it acquired from Sears Holdings in July 2015. The Company’s mission is to create long-term value for shareholders by realizing the value of the Company’s portfolio through re-leasing, redevelopment, formation of strategic partnerships or other bespoke solutions.

Forward-Looking Statements

This document contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” or “potential” or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and that do not relate solely to historical matters. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and contingencies, many of which are beyond the company’s control, which may cause actual results to differ significantly from those expressed in any forward-looking statement. Factors that could cause or contribute to such differences include, but are not limited to: declines in retail, real estate and general economic conditions; the impact of the COVID-19 pandemic on the business of the Company’s tenants and business, income, cash flow, results of operations, financial condition, liquidity, prospects, ability to service the Company’s debt obligations and ability to pay dividends and other distributions to shareholders, the Company’s historical exposure to Sears Holdings and the effects of its previously announced bankruptcy filing; the litigation filed against us and other defendants in the Sears Holdings adversarial proceeding pending in bankruptcy court; risks relating to redevelopment activities; contingencies to the commencement of rent under leases; the terms of the Company’s indebtedness; restrictions with which the Company is required to comply in order to maintain REIT status and other legal requirements to which the Company is subject; failure to achieve expected occupancy and/or rent levels within the projected time frame or at all; the impact of ongoing negative operating cash flow on the Company’s ability to fund operations and ongoing development; the Company’s ability to access or obtain sufficient sources of financing to fund the Company’s liquidity needs; the Company’s relatively limited history as an operating company; and environmental, health, safety and land use laws and regulations. For additional discussion of these and other applicable risks, assumptions and uncertainties, see the “Risk Factors” and forward-looking statement disclosure contained in the Company’s filings with the Securities and Exchange Commission, including the Company’s annual report on Form 10-K for the year ended December 31, 2020. While the Company believes that its forecasts and assumptions are reasonable, the Company cautions that actual results may differ materially. The Company intends the forward-looking statements to speak only as of the time made and do not undertake to update or revise them as more information becomes available, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211018005982/en/

Amanda Lombard

Chief Financial Officer

(212) 355-7800

-Or-

Stephanie Fukui

Investor Relations

(212) 355-7800

Source: Seritage Growth Properties

FAQ

What is the significance of The Collection at UTC for Seritage Growth Properties (SRG)?

The opening marks a significant milestone in Seritage's portfolio transformation, enhancing value for shareholders.

What percentage of The Collection at UTC is currently leased?

The Collection at UTC is 88% leased or under active lease negotiations.

When did the construction for The Collection at UTC begin?

Construction for The Collection at UTC commenced in May 2018.

Who is the first tenant of The Collection at UTC?

The first tenant of The Collection at UTC is Pacific Catch, a sustainable seafood restaurant.

What is the total size of The Collection at UTC?

The Collection at UTC spans over 194,000 square feet.