PHILADELPHIA, June 8 /PRNewswire/ -- Pennsylvania Real Estate Investment
Trust (NYSE: PEI) announced today that a joint venture, in which it is a 50%
partner obtained financing and closed on the acquisition of the 103 acre
retail site for the development of Metroplex Shopping Center in Plymouth
Meeting, PA. The project, which is being developed with The Goldenberg Group,
Inc. of Blue Bell, PA, is a power center consisting of approximately 780,000
square feet. Construction financing in the amount of $74.5 million for a term
of two years at an interest rate of 200 basis points over LIBOR was provided
by a consortium of banks led by Bank of America with Dime CRE, Inc., Summit
Bank, Wilmington Trust of Pennsylvania and FirstTrust Bank as participants.
The Metroplex is located at the intersection of Interstate 476 (the Blue
Route) and Chemical Road, immediately south of the Mid-County interchange of
the Pennsylvania Turnpike in Plymouth Meeting, PA. The property is over 90%
pre-leased and pre-committed. Target (138,000 square feet) and Lowe's
(163,000 square feet) will each acquire its site and construct its store.
Other major tenants include Giant Supermarket, Homelife, Best Buy, Bed Bath &
Beyond, Old Navy and Barnes & Noble. Site work and construction are expected
to commence immediately with the initial tenant occupancy expected in the
second quarter of 2000.
PREIT and The Goldenberg Group, Inc. have completed three retail projects
as joint venture partners -- The Court at Oxford Valley in Langhorne, PA,
Hillview in Cherry Hill, N.J. and Red Rose Commons in Lancaster, PA. In
addition to the Metroplex, the companies are developing the Pavilion at Market
East, a retail, entertainment and parking complex, to be anchored by
DisneyQuest, in Philadelphia, PA.
Commenting on the Metroplex development, Douglas S. Grayson, PREIT's
Executive Vice President -- Development said, "This development project is an
opportunity to create a potentially highly rewarding power center in a prime
retail market with a strong demographic profile. The Delaware Valley location
will attract customers from the western and northern suburbs of Philadelphia
representing the highest average household incomes in the region.
Furthermore, we are tremendously pleased with the excellent group of tenants
complementing our anchors -- Target, Lowe's and Giant Supermarket
-- reflecting the high level of desirability for this location."
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 6 retail properties under development. PREIT is headquartered in
Philadelphia, PA.
The Goldenberg Group, Inc., founded in 1984, is a commercial development
company which has developed almost 3.5 million square feet of retail space in
the Mid-Atlantic region. The company has more than 2 million square feet
under development in Pennsylvania and New Jersey. The Goldenberg Group, Inc.
is headquartered in Blue Bell, 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 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 statement and periodic reports filed with the Securities and
Exchange Commission.
To receive additional information on Pennsylvania Real Estate Investment
Trust via fax at no charge, please dial 1-800-PRO-INFO and enter the ticker
symbol PEI.
SOURCE Pennsylvania Real Estate Investment Trust
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Related links:
http://www.preit.com
CONTACT:
Douglas S. Grayson, Executive Vice President
- Development, of Pennsylvania Real Estate Investment Trust,
215-875-0700; or General Info, Joe Calabrese, or Analysts, Pamela
King, of The Financial Relations Board, 212-661-8030
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