PHILADELPHIA, Jan. 20 /PRNewswire/ -- Pennsylvania Real Investment Trust
(NYSE: PEI) announced today that it has acquired a 64-acre power center site
in conjunction with the center's two major tenants, Target and Lowe's.
Ownership of the 387,000 square foot shopping center is in the form of a
retail condominium in which the Company, Target and Lowe's own 100% of the
condominium.  The Company's share of the purchase price was $1.3 million, and
it plans to develop 100,000 square feet of stores complementary to Target and
Lowe's at a total cost of approximately $10 million.
    The shopping center, named Creekview, is located on Easton Road (State
Route 611) in Warrington Township, Bucks County, Pa., approximately 12 miles
north of Philadelphia, Pa.  The immediate trade area for the center has a
population of 125,000 and an average household income of $57,000.
    Construction of the shopping center is slated to begin in the first
quarter of 1999.  The Target and Lowe's stores are scheduled to open in
October 1999.  The Company is actively leasing its portion of the center and
expects to have stores open by the fourth quarter of 1999.  After completion
of site work and initial construction, the Company will also own an adjacent
five-acre parcel with frontage on Street Road (State Route 132), suitable for
the development of approximately 40,000 square feet.
    This is the Company's fourth development project with Target, which now
has 10 stores open or in development in the Delaware Valley.  The Company
anticipates developing two additional projects with Target in the near future.
The Lowe's store in Warrington is the Company's first project with Lowe's.

    Comments from Management
    Commenting on the transaction, Jonathan B. Weller, President and Chief
Operating Officer, said,  "We continue to position the company for growth
through the development of centers such as Creekview, which are located in
regions where we have an existing presence and offer positive development and
market opportunities.  The Warrington center, which was in our business plan
for development in 1999, is expected to be an excellent investment for the
Company with a return on cost in excess of 11%."
    Eric Mallory, Executive Vice President of the Company's management
affiliate, added, "We are very pleased with the commitment by the center's two
anchor tenants, Target and Lowe's, indicating their confidence in this project
and the demographic profile of the market.  Additionally, the Warrington
location represents a new Delaware Valley sub-market for the Company's power
center portfolio."
    Andy Bottaro, Development Director, added, "Working very closely with
Warrington Township leaders, we have designed a project which is sensitive to
the needs of the surrounding land owners while serving the consumer demand in
this community."
    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 shopping
centers (6.6 million square feet) and apartment communities (7,243 units)
located primarily in the eastern United States.  The Company's portfolio
currently consists of 47 properties in 10 states. In addition, there are 7
properties under development.  Pennsylvania Real Estate Investment Trust is
headquartered in Philadelphia, Pa.
    With the exception of the historical information contained in the release,
the matters described herein contain forward-looking statements that are made
pursuant to the Safe Harbor provisions of the Private Securities Litigation
Reform Act of 1995.  Such statements involve various risks and may cause
actual results to differ materially.  These risks include, but are not limited
to, the ability of the Trust to grow internally or by acquisition, and to
integrate acquired businesses, changing industry and competitive conditions,
and other risks outside the control of the company referred to in the Trust's
registration statement and periodic reports filed with the Securities and
Exchange Commission.

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