What happened

Shares of Seritage Growth Properties (SRG 0.65%) soared 80% on Friday after the property developer said it would seek the approval of its shareholders to sell its real estate holdings. 

So what

Seritage's board of trustees has been conducting a strategic review of its assets to maximize shareowner value. As part of those efforts, the board is recommending that shareholders vote during its annual meeting to allow Seritage to sell all its properties and distribute the proceeds to investors. The company would then be dissolved after the completion of those asset sales.

The board believes this plan will increase the number of potential buyers by eliminating the need for shareholders to approve each transaction. More bidders, in turn, could allow Seritage to sell its properties for higher prices.

"The Special Committee, the Board, and the management team all believe that, given the diversified nature of our portfolio, pursuing multiple transactions with different potential buyers for assets or groups of assets may present the best opportunity to maximize shareholder value," Seritage CEO Andrea Olshan said in a press release.

Now what 

For the plan to be approved, stock owners controlling at least two-thirds of Seritage's shares will need to vote in favor of the proposal. Nearly half of those votes are already secured after former chairman Edward Lampert, who owns roughly 29% of Seritage's stock, agreed to support the plan.

Seritage also said that it will continue to explore an outright sale of the company as part of its ongoing strategic review.