By Chelsey Dulaney 

Sears Holdings Corp. said Monday that it has formed a joint venture with mall owner Simon Property Group Inc., the latest move by the struggling retailer to cash in on the value of its real estate.

Sears, which earlier this month announced a similar venture with General Growth Properties Inc. , said it has contributed 10 properties valued at $228 million to the venture. Sears will lease back the properties, which are located at Simon malls, from the joint venture.

Shares of Sears, inactive premarket, are up 30% this year.

Simon, meanwhile, has contributed $114 million in cash to the venture.

The move comes as Sears looks to raise more than $2.5 billion by spinning off 254 of its best properties into a separate real-estate investment trust called Seritage Growth Properties. Sears plans to lease back the stores from Seritage.

The move allows shareholders like Sears CEO Edward Lampert to buy valuable company assets to raise much-needed cash, after a long string of losses rattled the company's suppliers and investors.

As part of this effort, Sears agreed earlier this month to partner with General Growth Properties, the nation's second-largest mall owner behind Simon, on a joint venture. Sears contributed 12 properties located at General Growth malls in exchange for half ownership of the joint venture and $165 million in cash. Sears is continuing to operate the 12 stores.

Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com

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