PHILADELPHIA, April 30 /PRNewswire-FirstCall/ -- Pennsylvania Real Estate
Investment Trust (NYSE: PEI), announced today that it has signed a lease with
Best Buy for a 32,504 square foot store at the Magnolia Mall, a 579,244 square
foot, single-level enclosed regional mall located in Florence, South Carolina.
The Best Buy store will occupy the space previously leased by Rose's
Department Store and will join Belk, JC Penney and Sears as an anchor at the
center. Retrofitting the space for the Best Buy store is expected to commence
in May with an anticipated Holiday 2002 opening. In addition to welcoming the
first Best Buy store in the Florence region, PREIT also announced plans to
build a new Food Court and an additional 18,000 square feet of specialty
stores in the Rose's space.
The Company estimates the additional capital investment in the asset,
including the cost to recapture Rose's, construct Best Buy, create the Food
Court and renovate the mall concourses and entrances, is approximately
$10.0 million and is forecasting an 11% free and clear yield on this
incremental capital investment. Best Buy's sales are expected to eclipse
Rose's by more than five times annually, which is expected to contribute to a
significant increase in customer traffic at the mall. During 2001 sales at
Magnolia Mall were approximately $300 per square foot.
The Commons at Magnolia Redevelopment
The Company also announced the near-completion of redevelopment work at
The Commons at Magnolia, a 229,515 square foot shopping center that will bring
the first Target store to the marketplace this summer with an expected July
2002 opening. Previously known as Florence Commons, the newly renamed The
Commons at Magnolia is directly adjacent to the Magnolia Mall and has been
undergoing a redevelopment since the middle of last year. Anchored by the new
126,200 square foot Target retail store, The Commons will also open the first
Bed Bath & Beyond store in Florence, along with popular-price junior anchor
Goody's (a former tenant that has undertaken a total renovation and a new
"prototype" store with this space).
Expanding and relocating within the center are Catherine's Plus, Manifest
Discs, Stride Rite, the Orthodontic Center and Rack Room Shoes, opening with
an expanded 10,419 square foot "superstore." Existing tenants at The Commons
at Magnolia include America's Home Place, Wells Fargo Financial Services
Center, and American General Finance.
The Magnolia Mall and The Commons at Magnolia are both located at the
intersection of Interstates 95 and 20 in Florence, South Carolina. Florence is
in the heart of the South Carolina's Pee Dee region, named for the Pee Dee
River, which runs through it. It is located 70 miles west of Myrtle Beach and
approximately 120 miles from both Charleston, South Carolina and Wilmington,
North Carolina. Known as a busy corporate center with a highly educated,
professional population, Florence County is one of the South's fastest growing
regions.
Comments from Management
Executive Vice President of the Retail Division Joseph F. Coradino states,
"This is a real home run ... we knew that the first Target and Bed Bath &
Beyond stores, along with the redevelopment and expansion of The Commons at
Magnolia, would have a terrific impact on the Pee Dee region's retail
landscape and help to spur the redevelopment of Magnolia Mall. The addition
of Best Buy and the fact that the Florence, SC shopper will have new shopping
opportunities both this summer and also for the Holidays is tremendously
exciting. Additionally, further enhancements of Magnolia Mall are planned, as
the Company will commence a multi-faceted renovation of this property in
January of 2003. The renovation will include a remodel of the mall's common
area, dramatic new entrances and updated signage and lighting to coincide with
the Food Court addition. As of right now, the Food Court is planned as a
five-store entity with a new entrance into the front of the shopping center
and indoor and outdoor seating."
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 (approximately 12.0 million square feet) and apartment communities
(approximately 7,242 units) located primarily in the eastern United States.
The Company's portfolio currently consists of 46 properties in 10 states. In
addition, there are 4 retail properties under development, which PREIT expects
will add approximately 1.3 million square feet to its portfolio. PREIT is
headquartered in Philadelphia, Pennsylvania.
The matters discussed in this report, as well as news releases issued from
time to time by PREIT include use of forward-looking terminology such as
"may," "will," "should," "expect," "anticipate," "estimate," "plan," or
"continue" or the negative thereof or other variations thereon, or comparable
terminology which constitute "forward-looking statements." Such
forward-looking statements (including without limitation, information
concerning PREIT's continuing dividend levels, planned acquisition,
development and divestiture activities, short- and long-term liquidity
position, ability to raise capital through public and private offerings of
debt and/or equity securities, availability of adequate funds at reasonable
cost, revenues and operating expenses for some or all of the properties,
leasing activities, occupancy rates, changes in local market conditions or
other competitive factors) involve known and unknown risks, uncertainties and
other factors that may cause the actual results, performance or achievements
of PREIT's results to be materially different from any future results,
performance or achievements expressed or implied by such forward-looking
statements. PREIT disclaims any obligation to update any such factors or to
publicly announce the result of any revisions to any of the forward-looking
statements contained herein to reflect future events or developments.
To receive additional information on Pennsylvania Real Estate Investment
Trust please visit the Company's website at http://www.preit.com .
SOURCE Pennsylvania Real Estate Investment Trust
 back to top
Related links:
http://www.preit.com
CONTACT:
Jonathan B. Weller, President and Chief
Operating Officer of Pennsylvania Real Estate Investment Trust,
+1-215-875-0700, or General Info, Joe Calabrese, +1-212-445-8434,
Analyst Info, Georganne Palffy, +1-312-266-7800, or Media Info,
Judith Sylk-Siegel, +1-212-445-8431, all of FRB Weber Shandwick
|
