Oracle’s land grab

Sears REIT up 16.6% on Buffett stake

Seritage Growth Properties, the real estate investment trust spun off from retailer Sears Holdings, soared nearly 17 percent, to $41.09, after billionaire Warren Buffett disclosed a personal investment in the company.

Buffett reported a passive holding of 2 million shares, representing an 8 percent stake, according to a regulatory filing on Thursday. Seritage began trading this year after Sears created the business to capitalize on its real estate holdings.

The REIT owns about 250 properties, which it leases back to Sears to be operated as department stores.

Sears raised $2.7 billion by creating the REIT as part of hedgefund manager Edward Lampert’s ef fort to turn around the struggling retailer. The new company is partnering with mall operators including Simon Property Group and Macerich as it seeks to monetize its real estate.

It’s not the first time that Buffett has taken a major stake in a REIT. In 2000, he disclosed a 5.1 percent holding in Aegis Realty, which at the time owned shopping centers and other property in 15 states. Buffett bought the stake for his personal holdings, rather than for Berkshire, the sprawling conglomerate he’s been building for the past five decades.

The billionaire didn’t return a request for comment sent to Berkshire. The filing listed only Buffett as the holder of the shares and didn’t mention Berkshire.

Seritage appears to be taking its time to ensure the best outcome, said Alexander Goldfarb, an analyst at Sandler O’Neill & Partners in New York.

“They are taking a thoughtful approach,” Goldfarb said. “They are trying to make sure the market isn’t flooded with a lot of inventory, which could depress values.”

Seritage climbed as high as $41.18 on Thursday, its biggest intraday gain since the stock’s debut in July.