PHILADELPHIA, May 28 /PRNewswire/ -- Pennsylvania Real Estate Investment
Trust (NYSE: PEI) announced that it has entered into a joint venture with the
Goldenberg Group, Inc. (Goldenberg) to develop The Pavilion at Market East,
located at 8th and Market Streets in Philadelphia, PA. The Pavilion at Market
East is a retail, entertainment and parking complex of approximately 350,000
square feet, which will be anchored by an indoor theme park created by The
Walt Disney Co., to be know as DisneyQuest. Additional tenants are expected
to include restaurants, stores and a multi-screen cinema.
The joint venture expects to raise approximately $50 million to cover its
share of the project's expected cost. PREIT and Goldenberg will share
development and leasing responsibilities, and PREIT will manage the property
upon completion.
PREIT and Goldenberg, as joint venture partners, have completed three
retail projects -- The Court at Oxford Valley in Langhorne, PA., Hillview in
Cherry Hill, NJ and Red Rose Commons in Lancaster, PA. -- and have begun
construction on a fourth project, the Metroplex in Plymouth Meeting, PA.
Given their history of successful joint ventures, the companies have excellent
working relationships.
Commenting on the new joint venture, Ronald Rubin, CEO of PREIT said, "We
elected to join with Goldenberg on The Pavilion at Market East because of our
belief in the financial potential of the project and its importance to the
City and future development of the Market Street East corridor. In addition,
there were certain aspects of our overall joint venture relationship with
Goldenberg that made investing in this project at the present time
economically attractive. We salute Goldenberg for conceiving the project and
bringing Disney to Philadelphia."
Kenneth N. Goldenberg, President of The Goldenberg Group, Inc. commented,
"The Goldenberg/PREIT joint venture creates terrific synergies, and I am very
excited about their joining with us on this project. The experience that our
organizations have had working together will enable us to complete the leasing
and development of this project on a more timely basis."
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 8.0 million square feet) and apartment communities
(7,241 units) located primarily in the eastern United States. The Company's
portfolio currently consists of 47 properties in 10 states. In addition,
there are 5 retail properties under development. PREIT is headquartered in
Philadelphia, PA.
The Goldenberg Group, Inc. is a real estate development company
headquartered in Blue Bell, PA. and is primarily engaged in the development,
leasing and operation of retail properties.
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 Company 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
Company's registration statements and periodic reports filed with the
Securities and Exchange Commission.
SOURCE Pennsylvania Real Estate Investment Trust
 back to top
Related links:
http://www.preit.com
CONTACT:
Ronald Rubin, Chief Executive Officer of
Pennsylvania Real Estate Investment Trust, 215-875-0700; or
Kenneth N. Goldenberg, President of Goldenberg Group, Inc.,
610-260-9600; or General Information, Joe Calabrese, Analyst
Information, Pamela King, or Media Information, Judith
Sylk-Siegel, of The Financial Relations Board, 212-661-8030
|
