Washington Prime Group Inc. said it has earmarked approximately $300 million to $350 million of capital for a three- to five-year plan to retrofit 28 department store spaces that it considers "at risk," as part of efforts to manage the company's exposure to such assets within its Tier One and Open Air portfolio.

The spaces include Sears locations and exclude those owned by third parties such as Seritage Growth Properties.

The company said the costs are included in the previously announced anticipated redevelopment cost of approximately $100 million to $125 million per year.

The regional mall-focused real estate investment trust said so far it has reduced its traditional department store exposure by almost 50% since 2015, with exposure to troubled retail chain Sears falling by 78%, or 47 locations.

As of Sept. 30, the revenue Washington Prime received from Sears equates to 0.8% of the total annualized minimum rent for the total portfolio, according to a release.

The company added that save for three locations, it owns the department store spaces, allowing for control to unlock future development opportunities.