Thursday, August 23, 2012

PREIT Raises $85 Million in Refi Proceeds

Pennsylvania Real Estate Investment Trust closed on three non-recourse loans of $402 million at an average interest rate of 4.06%, generating excess proceeds of $85.3 million.

The new loans replaced mortgage loan balances of $316.7 million carrying an average interest rate of 5.30%,
"We have now addressed all of the company's debt maturities through June 2013 and have created a reduced base of long-term, fixed-rate interest costs from which to grow earnings," said Andrew Ioannou, PREIT's senior vice president - capital markets and treasurer.

The company has completed $495.8 million of property-level financings to date in 2012, generating net proceeds of $102.9 million and a reduction in average interest rate of 129 basis points, from 5.54% to 4.25%.

The respective loans are secured by Cherry Hill Mall, Cumberland Mall and Christiana Center.

Cherry Hill Mall in Cherry Hill, NJ, is a 1.3 million-square-foot super-regional mall with sales per square foot of $630 as of June 30, 2012. Cherry Hill Mall is anchored by Nordstrom, Macy's and JCPenney and underwent a comprehensive redevelopment and renovation in 2009, transforming the center into the premier shopping and dining destination in southern New Jersey.

Cumberland Mall in Vineland, NJ, is a 944,000-square-foot regional mall anchored by JCPenney, Boscov's and Burlington Coat Factory with sales per square foot of $324 as of June 30.

Christiana Center in Newark, DE, is a 303,000-square-foot power center anchored by Costco and Dick's Sporting Goods.

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