FORT WASHINGTON, Pa., June 24 /PRNewswire/ -- Pennsylvania Real Estate
Investment Trust (NYSE: PEI) announced today that it had entered into a
purchase and sale agreement to acquire Prince Georges Plaza, an 850,000 square
foot regional shopping center in Hyattsville, Md., suburban Washington, D.C.
The purchase price for the center is $65 million, including the assumption of
approximately $43 million of debt.
    Prince Georges Plaza is being acquired from an entity affiliated with the
principals of Equity Properties and Development Limited Partnership, including
investor Sam Zell.  The Company's purchase of Prince Georges Plaza is subject
to customary due diligence and is expected to close by August 25, 1998.
    The Company's management affiliate, PREIT-RUBIN, Inc. has managed and
leased Prince Georges Plaza since January 1997.  The mall is anchored by
Hecht's, J.C. Penney, and G.C. Murphy and is presently 87% occupied.  Same
store sales for in-line mall tenants were $287 per square foot in 1997.
Prince Georges Plaza is located at the intersection of East-West Highway and
Belcrest Road, adjacent to a 1.1 million square foot federal office complex
and a major Metro station, providing access to the region's transportation
system.
    Ronald Rubin, Chief Executive Officer of the Company, commented, "The
acquisition of Prince Georges Plaza is consistent with our strategy of
acquiring malls which dominate their trade area.  In addition, we know the
property's potential extremely well, since we have been managing it for the
past 18 months.  The G.C. Murphy lease expires in 1999, representing an
opportunity to redevelop and remerchandise that section of the mall.  The
strong demographics in the market, combined with the opportunity to recapture
the G.C. Murphy space for another anchor tenant, provide excellent growth
potential for this asset."
    Mr. Rubin commented further, "This purchase puts us ahead of our
acquisition plan for 1998 and will be immediately accretive to our FFO."
    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 million square feet) and apartment communities (6,924 units)
located primarily in the eastern United States.  In addition, there are six
shopping centers currently under development.  PREIT's portfolio currently
consists of 45 properties in 10 states. PREIT is headquartered in Fort
Washington, Pa., a suburb of Philadelphia.
    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 PREIT 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 PREIT's
registration statement and periodic reports filed with the Securities and
Exchange Commission.

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