PREIT Sets Stage for Next Phase of Evolution with Approval of 1,065 Apartment Units at Moorestown Mall
PREIT (NYSE: PEI) has announced a significant transformation plan for its Moorestown Mall site, including a rezoning agreement for up to 1,065 multifamily units and a hotel. This initiative is part of a broader strategy to add 5,000 to 7,000 apartment units across its portfolio, generating over $150 million to enhance liquidity and reduce debt. The first phase includes 375 residential units and a hotel, with an anticipated $8 million sale of the initial parcel in 2021. The project aims to diversify mall usage while benefiting existing tenants.
- Rezoning agreement for 1,065 multifamily units and a hotel at Moorestown Mall.
- Expected proceeds of over $150 million to improve liquidity and reduce debt.
- Initial phase to deliver 375 residential units and a hotel, with an $8 million sale anticipated.
- Dependency on multifamily development to drive future growth amidst changing retail environments.
PHILADELPHIA, Jan. 11, 2021 /PRNewswire/ -- PREIT (NYSE: PEI), today announced that the Company will proceed with its plan to transform its properties into multi-use, sustainable districts with the execution of a rezoning agreement to allow for the addition of up to 1,065 multifamily units and a hotel at Moorestown Mall. Together, with plans to add several thousand units across its portfolio through the sale of land to multifamily developers, PREIT's densification program is expected to generate over
This is part of the Company's strategic plan to diversify the mix of uses at its mall sites with 5 – 7,000 apartment units and several hotel sites. The Company is in the final stages of delivering 3,500 apartment units in an initial phase. PREIT is focused on reinventing its platform by creating a diverse and expansive environment, marked by a healthy mix of multifamily housing, hotels, entertainment, dining, health & wellness, green space, working space, and local small business retail. This initiative capitalizes on bullseye locations to produce a broader consumer base, create stronger business models and provide greater market flexibility. Over the course of the past decade, as an initial step in this transformation, PREIT has reinvented its mall properties through the introduction of a variety of uses including entertainment venues, extensive dining programs, off-price and value purveyors, fitness centers and traditional open-air tenancy.
Like many of PREIT's Philadelphia and DC-area properties, Moorestown Mall is ideally situated for a residential community with tremendous access to roadways, along with over 13 million square feet of office space in the trade area. With unique tenancy including leading off-price retail purveyors, traditional retail, dining and entertainment options, Moorestown Mall offers a one-stop hub fulfilling customer needs from convenience to fun.
The first phase of the project is expected to deliver 375 residential units and a hotel. This initial phase will allow for PREIT's second multifamily development following the completion of 350 units at Exton Square. PREIT currently anticipates it will close on the sale of the initial parcel in 2021 for
"Our foresight has shaped a high-quality portfolio with a strong retail core that attracts a distinctive mix of new uses to redefine the future-ready retail and leisure district, including over 3,500 apartment units that are in the final stages of entitlement," said Joseph F. Coradino, CEO of PREIT. "The synergistic addition of apartments and hotels will benefit our existing tenants and communities by increasing visits to the property and delivering a new customer."
About PREIT
PREIT (NYSE:PEI) is a publicly traded real estate investment trust that owns and manages innovative properties at the forefront of shaping consumer experiences through the built environment. PREIT's robust portfolio of carefully curated retail and lifestyle offerings mixed with destination dining and entertainment experiences are located primarily in densely-populated, high barrier-to-entry markets with tremendous opportunity to create vibrant multi-use destinations. Additional information is available at www.preit.com or on Twitter or LinkedIn.
Forward Looking Statements
This press release contains certain forward-looking statements that can be identified by the use of words such as "anticipate," "believe," "estimate," "expect," "project," "intend," "may" or similar expressions. Forward-looking statements relate to expectations, beliefs, projections, future plans, strategies, anticipated events, trends and other matters that are not historical facts. These forward-looking statements reflect our current expectations and assumptions regarding our business, the economy and other future events and conditions and are based on currently available financial, economic and competitive data and our current business plans. Actual results could vary materially depending on risks, uncertainties and changes in circumstances that may affect our operations, markets, services, prices and other factors as discussed in the Risk Factors section of our other filings with the Securities and Exchange Commission. While we believe our assumptions are reasonable, we caution you against relying on any forward-looking statements as it is very difficult to predict the impact of known factors, and it is impossible for us to anticipate all factors that could affect our actual results. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, the ability to consummate a plan of reorganization in accordance with the terms of the RSA we have entered into; our ability to achieve our forecasted revenue and pro forma leverage ratio and generate free cash flow to further reduce our indebtedness; our ability to manage our business through the impacts of the COVID-19 pandemic, a weakening of global economic and financial conditions, changes in governmental regulations and related compliance and litigation costs and the other factors listed in our SEC filings. Additionally, our business might be materially and adversely affected by changes in the retail and real estate industries, including consolidation and store closings, particularly among anchor tenants; current economic conditions, including the impact of the COVID-19 pandemic and the steps taken by governmental authorities and other third parties to reduce its spread, and the corresponding effects on tenant business performance, prospects, solvency and leasing decisions; our inability to collect rent due to the bankruptcy or insolvency of tenants or otherwise; our ability to maintain and increase property occupancy, sales and rental rates; increases in operating costs that cannot be passed on to tenants; the effects of online shopping and other uses of technology on our retail tenants; risks related to our development and redevelopment activities, including delays, cost overruns and our inability to reach projected occupancy or rental rates; acts of violence at malls, including our properties, or at other similar spaces, and the potential effect on traffic and sales; our ability to sell properties that we seek to dispose of or our ability to obtain prices we seek; our substantial debt and the liquidation preference of our preferred shares and our high leverage ratio and our ability to remain in compliance with our financial covenants under our debt facilities; our ability to refinance our existing indebtedness when it matures, on favorable terms or at all; our ability to raise capital, including through sales of properties or interests in properties and through the issuance of equity or equity-related securities if market conditions are favorable; and potential dilution from any capital raising transactions or other equity issuances.
Additional factors that might cause future events, achievements or results to differ materially from those expressed or implied by our forward-looking statements include those discussed herein, and in the sections entitled "Item 1A. Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2019 and in our Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2020. We do not intend to update or revise any forward-looking statements to reflect new information, future events or otherwise.
PREIT Contact:
Heather Crowell
EVP, Strategy and Communications
(215) 316-6271
heather.crowell@preit.com
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FAQ
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