Property Appraisal Off by $2.6 Billion

---

Real estate controlled by troubled U.S. retailer J.C. Penney was appraised this week at $3.3 billion--$2.6 billion less than originally estimated.

Cushman & Wakefield valued the department store chain's 306 stores and leases on 123 locations at $3.3 billion in papers filed this week with U.S. regulators. Last week a Morgan Stanley research note valued the chain's property at $5.9 billion, Reuters reports.

Cushman & Wakefield placed the total value of Penney's property assets, including stores, distribution centers and headquarters, at $4.06 billion.

The discrepancy could play a big role in the fate of the chain, which is trying to arrange financing to secure its future. Goldman Sachs is reportedly in talks to lend the chain $1.75 billion, using the real estate as collateral.

Penney said the loan would leave the company with $2.65 billion in liquidity, including $821 million in cash.

The chain is trying to recover after a disastrous year, which saw sales fall 25 percent as chief executive Ron Johnson reconfigured stores. Mr. Johnson was ousted earlier this year.