Sears Holdings Corp. formed a real estate investment trust that will acquire about 254 of the retailer’s properties, generating more than $2.5 billion in proceeds for the money-losing department store chain.

The REIT, Seritage Growth Properties, will lease the Sears and Kmart locations back to the retailer, Sears said in a statement Wednesday. Seritage will fund the purchase with debt and proceeds from a rights offering.

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