It isn’t a coincidence that Sears is proposing to redevelop their property at Aventura Mall – it is part of a strategy directed by funds controlling the company that are based in Miami.
Two Miami fund managers control over 70% of outstanding shares.
Sears CEO Edward Lampert lives in Miami, and controls almost 49% of shares of the company through his hedge fund. Lampert made headlines in 2012 when he bought a home on Indian Creek Island for a then record-breaking $40 million. Lampert also relocated his fund to Miami from Connecticut in the same year.
Berkowitz and Lampert are value investors who are likely looking at the company’s real estate holdings rather than the retail business. The pair recently teamed to provide a $400 million loan to Sears that is secured by Sears properties. The company has also announced plans to convert to a REIT.