Retailer Sears Canada has completed a deal to return three of its stores to real estate developer and landlord, The Cadillac Fairview Corp, generating CAD170m (US$170.5m).

The company announced the agreement, which was subject to certain closing conditions, last month. The stores concerned include Vancouver Pacific Centre, Calgary Chinook Centre and Ottawa Rideau Centre. Sears plans to exit all three stores by the end of October.

Parent company Sears Holdings revealed plans to spin-off its Hometown and Outlet businesses and sell 11 stores after reporting a full-year loss of US$3.1bn in February.

The US retailer said it was looking to raise around $770m through the moves, generating $270 from the property sales and between $400-500m from the spin-off.

Sears Canada has 196 corporate stores, 285 Hometown dealer stores, 30 home services showrooms, over 1,700 catalogue merchandise pick-up locations.