Federated sells Lord & Taylor for $1.195B

CINCINNATI, June 22 (UPI) -- A New York investor group is buying the Lord & Taylor stores of Federated Department Stores Inc. for $1.195 billion in cash.

The sale includes 48 Lord & Taylor stores in New Jersey, New York, Illinois, Massachusetts, Connecticut, Maryland, Virginia, Michigan, Pennsylvania, and the District of Columbia, as well as a distribution center in Wilkes-Barre, Pa., Federated said Thursday.

NRDC Equity Partners LLC, the buyer, is a partnership between principals of Apollo Real Estate Advisors LP and National Realty & Development Corp.

Federated's board of directors has approved the sale. A transaction is expected to close in the third quarter of 2006, pending regulatory approvals.

Federated will continue to operate all Lord & Taylor stores and facilities until NRDC assumes ownership. Federated accounts for Lord & Taylor as a discontinued operation.