Nearly everyone is familiar with the shopping chain giant. Retailer Target may get into the real estate business
(sort of). A prominent investor has proposed an idea where Target would sell the land that its stores are sitting on to a new entity – and then pay rent to that new entity for use of the real estate. Existing shareholders would gain shares of stock within the new business spinoff as well as retaining ownership of their shares in the original Target store. The benefit? The theory is, that the value of the stock would go up as much as 74% and all the shareholders would make big profits/gains on the value of their shares. Essentially, the value of the parts are greater than the total type of philosophy. Regardless if the idea comes to fruition or not – the proposal has already made a big impact. Target shares have increased in value by over $6 billion, and the shares of the investors company have increased in value $600 million. So, just for pitching and publicizing the idea – without even doing anything – hundreds of millions of dollars have been made just on market sentiment for the companies.