Billionaire investor Warren Buffet has once again showed us his own investment outcome.
Seritage Growth Properties (NYSE:SRG), the real estate company was just span of from Sears Holdings (NASDAQ:SHLD), shares went skyrocketing for more than 16% to $41 per share on Thursday morning.
According to the Securities and Exchange Commission filing, Buffett holds 8.02% of shares in Seritage Growth Properties or about 2 million shares. As of today, Warren Buffett’s investment in the trust is now worth more $80 million.
Seritage Growth Properties is a real estate investment trust that Sears Holdings Corp. formed by spinning off around 235 Sears and Kmart
stores this June. Sears Holdings pursued the strategy of spinning off the units to raise cash from its real estate holdings because of the declining sales. This move helped Sears improve its financial position and have about $2.7 billion cash at its balance sheet. Seritage Growth Properties had started to trade as an individual stock on the New York Stock Exchange from this July.
Warren Buffett has always get attention for his acquisitions and investment in properties that remain undervalued or have potential for growth.
Notably, this investment was made by Warren Buffett himself and not by his conglomerate Berkshire Hathaway Inc. Last month, Home Services of America Inc., a wing of Berkshire Hathaway, decided to buy Allie Beth Allman & Associates, a luxury real estate broker. These moves by Buffett are sure to attract more investment in REITs as many investors keep a close eye on his investment moves as a guide to build their portfolios.