PHILADELPHIA, Nov. 15 /PRNewswire/ -- Pennsylvania Real Estate Investment
Trust (NYSE: PEI) today announced the completion of redevelopment at Willow
Grove Park, a 1.2 million square foot regional shopping center 12 miles north
of Philadelphia in Willow Grove, Pennsylvania. Redevelopment efforts at Willow
Grove Park included mall renovations and the addition of a new 225,000 square
foot, three-level, full-line Macy's department store. Redevelopment of Willow
Grove Park was completed on schedule in October 2001 and culminated with its
grand reopening last week.
PREIT's ownership share of the asset, which was purchased in February 2000
through a partnership between the Company and Pennsylvania State Employee
Retirement System (PaSERS) for $140 million, will be 30%. Upon concluding the
Macy's development, PREIT also becomes Willow Grove Park's managing general
partner. Previously, PREIT had a limited partnership interest and received
fees for managing the property and performing construction oversight services.
The property was acquired from a commingled investment account comprised of
pension fund clients. The project is the first joint venture between PREIT and
PaSERS. Established in 1923, PaSERS is one of the nation's oldest and largest
statewide retirement plans for public employees.
The Company's investment in real estate for Willow Grove Park at year-end
is expected to be $47.5 million, including approximately $16 million of
development expenditures and the assumption of 30% of the property's
financing, of which PREIT's portion is approximately $31.5 million.
Ronald Rubin, Chairman and Chief Executive Officer of PREIT said, "Willow
Grove Park is a thriving and evolving retail property, and it is exciting to
have such a prestigious retailer as Macy's join the complex as its fourth
anchor. This comprehensive expansion strengthens its position as the area's
major regional mall and is a direct reflection of the mall's successful
history and well planned future. Willow Grove is a prime example of how the
Company intends to take advantage of opportunities to enhance the value of
centers in its portfolio." The Company noted that, since the beginning of the
year, new leases were executed with several leading retailers including J.
Crew, Banana Republic, Casual Corner, Rockport Shoes and Spencer Gifts and an
expansion with Gap.
Further renovation upgrades include improvements to common areas and
construction of a new parking garage for 700 cars. The shopping center is
currently 91% leased and the new Macy's joins the existing anchors
Bloomingdale's, Sears and Strawbridge's. The mall includes approximately 130
specialty, fashion-focused stores and 11 food court units.
Currently, the trade area for Willow Grove Park encompasses more than
650,000 persons, with anticipated growth of another 15,000 persons by 2003.
The trade area's average household income is $78,114, representing many of the
highest income zip codes in Pennsylvania within a two miles radius of the
mall.
Willow Grove Park, at Easton Road (Route 611) between Old Welsh Road and
Moreland Road, minutes from Exit 27 of the Pennsylvania Turnpike, was
originally developed by a partnership of The Rubin Organization and Federated
Stores Realty. The Rubin Organization was acquired by PREIT in 1997.
This is the first Philadelphia-area Macy's department store opened in over
20 years. Macy's is a division of Federated Department Stores, Inc.
Federated, with corporate offices in Cincinnati and New York, is one of the
nation's leading department store retailers, with annual sales of more than
$18.4 billion. Federated currently operates more than 450 stores in 34 states,
Puerto Rico and Guam under the names of Bloomingdale's, The Bon Marche,
Burdines, Goldsmith's, Lazarus, Liberty House, Macy's and Rich's, as well as
macys.com, bloomingdales.com, Bloomingdale's By Mail and Fingerhut.
About Pennsylvania Real Estate Investment Trust
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 10.9 million square feet) and apartment communities
(approximately 7,242 units) located primarily in the eastern United States.
The Company's portfolio currently consists of 45 properties in 10 states. In
addition, there are 6 retail properties under development, which PREIT expects
will add approximately 1.8 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.
SOURCE Pennsylvania Real Estate Investment Trust
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Related links:
http://www.preit.com
CONTACT:
Edward A. Glickman, Executive Vice President
and CFO, 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
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