Nov
05

Target’s Next Big Sale: The Land under Their Stores

By

October 5, 2008

By Michael Brush – MSN Money

One of the discount retailer’s biggest investors is pushing a plan to spin off its land, saving Target huge sums in taxes and boosting its stock price. Will the company go along?

Target, the discount retailer nicknamed “Tar-zhay” by affectionate shoppers who regularly peruse its aisles for “cheap chic” designer goodies, may soon have a new bargain to offer: prime real estate at marked-down prices.

Unlike most retailers, Target (TGT, news, msgs) owns virtually all of the land underneath its 1,600 stores. And it’s some of the best retail land around, because Target has been careful over the years to buy in areas with the best demographics.

Now, as dismal retail-sales trends weigh heavily on Target’s bottom line and haunt its shareholders, many of them want the retailer to carry out a massive land sale of sorts to reap the value of those real-estate holdings.

Mind you, you wouldn’t be able to buy parcels and build on them. You would be able to buy shares, and Target would pay you rent.

ARTICLE SHORTENED DUE TO LENGTH….

LINK TO ARTICLE HERE:
http://articles.moneycentral.msn.com/Investing/CompanyFocus/targets-next-big-sale-real-estate.aspx

Be Sociable, Share!
    Categories : National News

    Comments are closed.