Macy’s, Inc. Forms Strategic Alliance with Brookfield Asset Management to Expand Opportunities to Enhance Real Estate Portfolio Value

CINCINNATI–(BUSINESS WIRE)–Consistent with its previously announced strategy, Macy’s, Inc. (NYSE:M)
today announced it is forming a strategic alliance with Brookfield Asset
Management, a leading global alternative asset manager, to create
increased value in its real estate portfolio.

Brookfield’s investments in real estate span all major sectors – retail,
office, multi-family, industrial and hospitality. Brookfield is one of
the few firms with both the capital and the operating capability
required for this type of partnership. Together, the companies believe
they will be able to realize the development potential of Macy’s

(Editor’s Note: Macy’s, Inc. today also issued a separate news
release announcing third quarter 2016 earnings, reaffirming full-year
2016 EPS guidance and raising full-year sales guidance.)

Under the alliance, Brookfield will have an exclusive right for up to 24
months to create a “pre-development plan” for each of approximately 50
Macy’s real estate assets, with an option for Macy’s to continue to
identify and add assets into the alliance. These assets primarily
include owned and ground- leased stores and associated land, most of
which are located in malls not owned by major mall owners. The breadth
of opportunity within the portfolio ranges from the additional
development on a portion of an asset (such as a Macy’s-controlled land
parcel adjacent to a store) to the complete redevelopment of an existing

“We have real estate assets with significant value creation
opportunities, and we believe that partnering with a leading global real
estate investor like Brookfield is the best way to unlock the potential
of those assets,” said Terry J. Lundgren, Macy’s, Inc. chairman and
chief executive officer. “The Brookfield alliance strengthens our
ability to improve the customer shopping experience by giving us greater
flexibility to invest in our most productive and highest-potential
locations, and to make the most of our real estate assets, or portions
of them.”

“We are pleased to partner with Macy’s on this important initiative,”
said Brian Kingston, CEO, Brookfield Property Group. “The Macy’s
portfolio includes some of the highest quality real estate in the United
States and we look forward to working closely with them to unlock value
for their shareholders and enhance the shopping experience for their

The Brookfield alliance is part of Macy’s previously-announced strategy
to generate value from its real estate portfolio consistent with the
company’s commitment to stores as a critical element of its long-term
omnichannel strategy and its balance sheet objectives. The company is
also exploring options for its flagship stores and closing approximately
100 full-line Macy’s stores due to underperformance or because the value
of the real estate exceeds the value to Macy’s as a retail store

Eastdil Secured and Goldman, Sachs & Co. acted as financial advisors to

Macy’s, Inc., with corporate offices in Cincinnati and New York, is one
of the nation’s premier retailers, with fiscal 2015 sales of $27.079
billion. The company operates about 880 stores in 45 states, the
District of Columbia, Guam and Puerto Rico under the names of Macy’s,
Bloomingdale’s, Bloomingdale’s Outlet, Macy’s Backstage and Bluemercury,
as well as the, and
websites. Bloomingdale’s in Dubai is operated by Al Tayer Group LLC
under a license agreement.

All statements in this press release that are not statements of
historical fact are forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Such statements are
based upon the current beliefs and expectations of Macy’s management and
are subject to significant risks and uncertainties. Actual results could
differ materially from those expressed in or implied by the
forward-looking statements contained in this release because of a
variety of factors, including conditions to, or changes in the timing
of, proposed real estate and other transactions, prevailing interest
rates and non-recurring charges, store closings, competitive pressures
from specialty stores, general merchandise stores, off-price and
discount stores, manufacturers’ outlets, the Internet, mail-order
catalogs and television shopping and general consumer spending levels,
including the impact of the availability and level of consumer debt, the
effect of weather and other factors identified in documents filed by the
company with the Securities and Exchange Commission.

(NOTE: Additional information on Macy’s, Inc., including past news
releases, is available at


Macy’s, Inc.
Holly Thomas, 646-429-5250
Stautberg, 513-579-7780