Seritage Growth Properties (SRG)
Thesis
Seritage Growth Properties is an American retail REIT focused on increasing the value of their estate. The company repurposes old Sears stores turning them into multipurpose retail centres. So far, Seritage has been able to achieve 10-11% unlevered returns on additional capital invested in these redevelopment projects. Approximately two-thirds of the estate is yet to be redeveloped. We expect that Seritage will continue deploying capital at this attractive rate of return and will at least triple shareholders' capital over the next 8-10 years. From the long-term perspective, this