Federated in large-scale swap

US-based Federated Department Stores Inc has announced a deal with the Australian-based real estate conglomerate Westfield Group, in which it will sell 15 stores in return for 12 stores that it has been leasing from Westfield. The Australian group is the world's largest retail property company. Federated will sell six Macy's stores, one Hecht's store and five Robinson's-May stores. Three additional stores will be sold to Westfield for $18.5 million (£10.6 million).

Thirteen of the 15 stores sold by Federated were duplicates following the acquisition of May Department Store Co and its stores for $17 billion in February 2005. "We're swapping 12 stores for 12 stores," Federated spokesman Jim Sluzewski told The Enquirer. "We'd identified 13 of the 15 for divestiture. This was the best deal for the properties." Federated plans to divest 78 stores across the US that vie with former May stores. Earlier in the year it sold 10 stores to Boscov's Inc, a family-owned department store chain based in Pennsylvania.