Starboard Pushes Macy’s to Enter Real Estate Deals
NEW YORK – Activist investor Starboard Value wants Macy’s to tap the value of its real estate assets by splitting them off into separate companies.
Starboard’s plan published Monday urges the department store operator to create two joint ventures. One would hold its properties in New York, San Francisco and other major cities, while the other would hold its mall properties. Altogether, Starboard says the department store’s real estate is worth about $21 billion.
Creating the joint ventures with real estate partners could boost the value of Macy’s stock to $70, Starboard says, nearly double what it’s currently worth. According to FactSet, Starboard has a 1 percent stake in Macy’s.
A Macy’s representative did not immediately respond to a request for comment.