Sears Spinoff Seritage Growth Up Huge After Warren Buffett Takes 8% Stake

• Shares of Seritage Growth Properties SRG surged higher by nearly 13 percent Thursday morning.
• Warren Buffett's Berkshire Hathaway Inc. (NYSE: BRK-A) (NYSE: BRK-B) acquired an 8 percent stake in the REIT.
• Seritage Growth is a portfolio of more than 200 real estate properties that spun off from Sears Holdings Corp SHLD.

Seritage Growth Properties recently traded at $39.65, up 12.5 percent after Warren Buffett's Berkshire Hathaway disclosed an 8 percent stake in the REIT.

In an SEC 13G filing dated on Thursday, Buffett disclosed an 8.02 percent stake in Seritage Growth Properties, or two million shares.

Seritage Growth Properties consists of a portfolio of more than 200 real estate properties that were spun-off from the struggling retailer Sears.

Related Link: MGM Resorts Shares Spike Following Plans To Create A REIT

Forbes noted that Buffett's investment in the REIT may prove to be a "tailwind" for Sears CEO Eddie Lampert who committed towards transferring more Sears properties to Seritage in 2016. The publication also added that Buffett's investment may "inspire confidence" in other retailers who are looking to spin-off real estate assets, either through their own conviction or from shareholder pressure.

Shares of MGM Resorts International MGM surged higher by after the company announced it will create a controlled REIT named MGM Growth Properties LLC.

Meanwhile, Macy's, Inc. M management suggested that it will not pursue an REIT structure when the company reported its third quarter results. It has yet to be seen if Buffett's seal of approval will change the company's mind – or if activist investors will push the company to head in that direction.