Pennsylvania Real Estate Investment Trust (NYSE: PEI) has completed a $55 million supplemental financing of Cherry Hill Mall in Cherry Hill, New Jersey. The loan was provided by Prudential Mortgage Capital Company and Northwestern Mutual, has a fixed interest rate of 5.51% and will mature in October 2012. The maturity date coincides with that of the existing first mortgage on the property, which was put in place in September 2005 with the same lenders. The first 24 payments of the new loan will be interest only, followed by principal and interest payments calculated based on a 360-month amortization schedule. The proceeds will be used to pay down a portion of the Company’s revolving Credit Facility and for general corporate purposes.
“We believe this financing demonstrates our lenders’ recognition of the value we are creating through our redevelopment of Cherry Hill Mall,” commented Ronald Rubin, Chairman and Chief Executive Officer of PREIT. “We are proud of the significant progress made to date and excited about the new stores and restaurants we are adding to the mall that enhance the overall shopping experience.”
Cherry Hill Mall, conveniently located on Route 38 less than 10 miles from center city Philadelphia, is a 1,000,000 square foot regional mall currently anchored by Macy’s and JCPenney. Nordstrom’s, scheduled to open in Spring 2009, will be added to the mall as part of the redevelopment that has already added Aerie, Armani Exchange, and Hollister, as well as Crate & Barrel and The Container Store on outparcels. Additionally, upscale restaurants will be added as “Bistro Row” and the interior will be completely renovated. As of September 30, 2007, trailing twelve month same store sales at Cherry Hill Mall were $480 per square foot and total occupancy was 89%.
About Pennsylvania Real Estate Investment Trust
Pennsylvania Real Estate Investment Trust, founded in 1960 and one of the first equity REITs in the U.S., has a primary investment focus on retail shopping malls and power centers. Currently, the Company's retail portfolio is approximately 34 million square feet and consists of 55 properties, including 38 shopping malls, 11 strip and power centers, and six properties under development. The Company's properties are located in 13 states in the eastern half of the United States, primarily in the Mid-Atlantic region. PREIT is headquartered in Philadelphia, Pennsylvania. The Company's website can be found at www.preit.com. PREIT is publicly traded on the NYSE under the symbol PEI.
This press release contains certain “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements relate to expectations, beliefs, projections, future plans, strategies, anticipated events, trends and other matters that are not historical facts. These forward-looking statements reflect PREIT’s current views about future events and are subject to risks, uncertainties and changes in circumstances that might cause future events, achievements or results to differ materially from those expressed or implied by the forward-looking statements. More specifically, PREIT’s business might be affected by uncertainties affecting real estate businesses generally as well as the following, among other factors: general economic, financial and political conditions, including changes in interest rates or the possibility of war or terrorist attacks; changes in local market conditions or other competitive or retail industry factors in the regions where our properties are concentrated; PREIT’s ability to maintain and increase property occupancy and rental rates, and risks relating to development or redevelopment activities, including construction, obtaining entitlements and managing multiple projects simultaneously. Additionally, there can be no assurance that PREIT’s actual results will not differ significantly from the estimates set forth above, or that PREIT’s returns on its developments, redevelopments or acquisitions will be consistent with the estimates outlined in press releases or other disclosures. Investors are also directed to consider the risks and uncertainties discussed in documents PREIT has filed with the Securities and Exchange Commission and, in particular, PREIT's Annual Report on Form 10-K for the year ended December 31, 2006. PREIT does not intend to update or revise any forward-looking statements to reflect new information, future events or otherwise.
** Additional information about PREIT is available on www.preit.com **
Contacts:
Robert McCadden,
215-875-0735
EVP and CFO
OR
Nurit Yaron, 215-875-0735
VP,
Investor Relations
