FORT WASHINGTON, Pa., Dec. 22 /PRNewswire/ -- Pennsylvania Real Estate
Investment Trust (NYSE: PEI) announced today multiple developments involving
two properties and a parcel of land.  Specifically, the Company announced that
it has acquired a partner's 50% interest in two multifamily communities and a
parcel of undeveloped land.  It has also refinanced one of the properties and
settled all outstanding litigation between the parties.
    The properties involved are Fox Run in Bear, DE (414 units), Eagle's Nest
in Coral Springs, FL (264 units) and an undeveloped 14-acre parcel in Coral
Springs, FL that will accommodate the development of approximately 260 units.
The Company made a payment of $775,000 to Robert and Daniel Berman to acquire
the partnership interests.  The Company believes the acquisitions will be
accretive to the Company's funds from operations (FFO) beginning in 1999.
    The Company will assume the management of the Fox Run and Eagle's Nest
apartment communities and intends to sell the undeveloped parcel.  Fox Run
will be part of a regional concentration of 1,683 units in the Delaware
Valley/Harrisburg, PA markets.  Eagles's Nest will be managed along with the
Company's 1,738 units in Florida's Broward and Palm Beach Counties.
    The Company also refinanced the Fox Run property.  The existing financing
of $14.3 million with a weighted average interest rate of 7.78% was replaced
with a new mortgage in the amount of $14.6 million bearing interest at 6.54%
with a maturity in December 2008.  The Company paid a prepayment penalty of
$270,000 in connection with the refinancing.  The savings in interest payments
will be approximately $150,000, or $.01 per share.
    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 (6.1 million square feet) and apartment communities (7,243 units)
located primarily in the eastern United States.   The Company's portfolio
currently consists of 46 properties in ten states.  In addition, there are 7
properties under development.  Pennsylvania Real Estate Investment Trust is
headquartered in Fort Washington, Pennsylvania, a suburb of Philadelphia.
    With the exception of the historical information contained in the release,
the matters described herein may 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 Trust 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 Trust's registration statement and periodic reports filed with the
Securities and Exchange Commission.

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