Pennsylvania Real Estate Investment Trust (NYSE: PEI) announced today that it has completed a $45 million financing of Christiana Center in Newark, Delaware. The mortgage loan, provided by Citizens Bank of Pennsylvania, has a term of three years with two one-year extension options. The variable interest rate, 185 basis points over one-month LIBOR, was swapped to a fixed rate of 5.865 percent for the initial term of the loan.
The Company also completed a $20 million financing of Creekview Center in Warrington, Pennsylvania. This mortgage loan, provided by Wilmington Trust of Pennsylvania, has a term of two years with three one-year extension options. The variable interest rate, 215 basis points over one-month LIBOR, was swapped to a fixed rate of 5.56 percent for the initial term of the loan.
The proceeds of these two financings were used to repay a portion of the amount outstanding under the Company's revolving Credit Facility and for general corporate purposes.
Christiana Center, developed in 1998 by PREIT, is a 300,000 square foot power center located immediately adjacent to Interstate 95 in Newark, Delaware. Retailers at the property include Costco, Dick’s Sporting Goods, Circuit City, and Michael’s. As of March 31, 2008, total occupancy for the center was 100 percent.
Creekview Center, developed in 2001 by PREIT, is a 425,000 square foot shopping center located approximately 4 miles north of the Pennsylvania Turnpike on Route 611 in Warrington, Pennsylvania. Retailers at the property include Lowe’s, Target, and Genuardi’s. As of March 31, 2008, total occupancy for the center was 100 percent.
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, 13 strip and power centers, and four 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 credit market conditions, 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, 2007. 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 & CFO
or
Nurit Yaron, 215-875-0735
VP,
Investor Relations
