Seritage Growth Properties Announces Amendment to Senior Secured Term Loan Agreement

Offers Seritage the ability to prepay the loan and the option to extend the maturity date to July 2025, subject to $ 800 million in prepayments

NEW YORK, November 29, 2021– (BUSINESS WIRE) – Seritage Growth Properties (NYSE: SRG) (the “Company”), a national owner and developer of 170 commercial, residential and mixed-use properties, today announced an amendment to Seritage Growth Properties LP and the Company’s Senior Secured Term Loan Agreement (the “Agreement”) with Berkshire Hathaway Life Insurance Company of Nebraska for the $ 1.6 billion term loan facility previously announced on July 31, 2018 .

Under the amendment, the companies mutually agreed that the “repayment” provision of the Agreement would not apply to prepayments of principal on the term loan facility. In addition, the Companies have agreed that, at Seritage’s option, the Agreement may be extended for two years from the expiration date of July 31, 2023 (the “Maturity Date”) to July 31, 2025, at provided that the principal amount of the term loan facility has been reduced to $ 800 million by the maturity date.

In all other respects, the Agreement remains unchanged.

About the growth properties of Seritage

Seritage is primarily engaged in the ownership, development, redevelopment, management and rental of diverse and mixed-use properties throughout the United States. As at September 30, 2021, the Company’s portfolio consisted of interests in 170 properties comprising approximately 10.0 million square feet of GLA or custom leased area (approximately 8.0 million in share), of which approximately 4.0 million million are held by unconsolidated entities (approximately 2.0 million units), approximately 600 acres held for or under development and approximately 10.0 million square feet of GLA or approximately 850 acres to be disposed of.

Forward-looking statements

This document contains forward-looking statements within the meaning of federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions regarding matters that are not historical facts. In some cases, you can identify forward-looking statements by using forward-looking terminology such as “may”, “should”, “expects”, “intends”, “plans”, “anticipates”, “believes”, “” Estimates “,” predicted “or” potential “or the negative of such words and phrases or similar words or phrases which are predictions or indicate future events or trends and which do not relate solely to historical matters. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and contingencies, many of which are beyond the control of the Company, which may cause actual results to differ materially from those expressed in forward-looking statements. factors that could cause or contribute to such differences include, but are not limited to: declines in retail, real estate and general economic conditions; impact of continued negative operating cash flows on the Company’s ability to finance its operations and continued development; the impact of the COVID-19 pandemic on the activities of the Company’s tenants and the Company’s activities, revenues, cash flow, results of operations, financial condition, liquidity, outlook, the ability to repay the debts of the Company and the ability to pay dividends and other distributions to shareholders; competition in the real estate and retail sectors; risks associated with redevelopment activities and the potential acquisition or disposal of properties; failure to meet expected occupancy and / or rent levels on time or not at all; contingencies at the start of rent under the leases; the Company’s historical exposure to Sears Holdings and the effects of its previously announced bankruptcy; litigation against the Company and other defendants in Sears Holdings’ adversarial proceedings pending in bankruptcy court; the indebtedness conditions of the Company and the availability or sources of liquidity, including the ability of the Company to access or obtain sufficient sources of financing to finance its liquidity needs and the economic conditions which may affect the cost of ‘loan; environmental, health, safety and land use laws and regulations; the restrictions with which the Company is required to comply in order to maintain REIT status and other legal requirements to which the Company is subject; risks and costs associated with volatile raw material and labor prices or as a result of supply chain or supply disruptions; and the Company’s relatively limited operating history as an independent public company. For further discussion of these applicable risks, assumptions and uncertainties, see “Risk Factors” and forward-looking statements contained in documents filed by the Company with the Securities and Exchange Commission, including the Company’s annual report on the Form 10-K for the fiscal year ended December 31, 2020 and any subsequent quarterly reports on Form 10-Q. Although the Company believes that its forecasts and assumptions are reasonable, the Company cautions that actual results may differ materially. The Company intends that forward-looking statements are only valid at the time they are made and does not undertake to update or revise them as more information becomes available, except if the law requires it.

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Seritage Growth Properties
Amanda Lombard, Chief Financial Officer
(212) 355-7800
[email protected]

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