COLUMBUS, Ohio--(BUSINESS WIRE)--Washington Prime Group Inc. (NYSE: WPG) today announced its most recent redevelopment project, a renovation at Pearlridge Center located in Aiea, Hawaii. Pearlridge Center is comprised of two distinct enclosed venues commonly referred to as Uptown and Downtown.
The $33M project includes a significant remodel of Pearlridge Downtown consisting of new tenants, a contemporary dining space, new interior and exterior finishes and updated entranceways. Also part of the renovation project are specialty grocery store Down to Earth, which will move to an expanded freestanding space; a Bank of Hawaii financial services center; fast casual pizzeria Pieology; fast casual restaurant Five Guys Burgers and Fries; and innovative menswear retailer Lindbergh.
Further evidencing the appeal of Pearlridge Center, Hawaii Pacific Health recently commenced construction of a 24,000 SF state-of-the-art cancer treatment center in Pearlridge Downtown. In addition, recent tenant openings include Agu Ramen, Anthem, Jamba Juice and Pho Factory.
Lou Conforti, CEO and Director: “As previously discussed, our objective is to provide differentiated products and services to our guests. Our most recent efforts at Pearlridge Center illustrate this mandate. We continue to identify value enhancing redevelopment opportunities in conjunction with our strategy to invest $150M to $200M annually in assets which we deem as our Core Portfolio. Based upon our strong track record of redevelopment in such assets as Polaris Fashion Place, located in Columbus, OH; Jefferson Valley Mall, located in Yorktown Heights, NY; and Scottsdale Quarter, located in Scottsdale, AZ, we have produced accretive results with initial returns in the range of 7% to 11%, averaging approximately 9%. In fact, we currently have more than 35 active or approved redevelopment projects across our Core Portfolio.”
The funding for the renovation at Pearlridge Center will be shared pro rata with O’Connor Mall Partners, L.P., the partner in the Company’s joint venture that owns the property, resulting in the Company’s share of the investment of approximately $17M for this phase of the redevelopment project. O’Connor Mall Partners, L.P., is an affiliate of O’Connor Capital Partners.
“This investment reflects our commitment to the Aiea community, which continues to support Pearlridge Center,” said Fred Paine, general manager of Pearlridge Center. “The renovation project will provide our guests with an increasingly dynamic environment in which to shop, dine and spend time together.”
Updated exterior facades and entrances will enhance curb appeal, while interior finishes in Pearlridge Downtown’s dining area will be updated and expanded to create an aesthetically pleasing environment. Architectural design details will reflect the unique culture of Oahu and the local community. Renovation of all restrooms throughout Pearlridge Center has also been completed including the addition of family restrooms and a new nursing room.
The renovation is expected to be completed in phases during the second quarter of 2017 and throughout 2018. During construction, Pearlridge Center will remain open with minimal interference for customers.
About Pearlridge Center
Pearlridge Center is a 1.2 million-square-foot super-regional shopping center located in Aiea off of Kamehameha Highway. It is Hawaii’s largest indoor retail center and features Oahu’s only monorail system. The 55-acre property consists of Uptown and Downtown complexes offering more than 220 retail, dining and entertainment options. Learn more at www.pearlridgeonline.com.
About Washington Prime Group
Washington Prime Group Inc. is a retail REIT and a recognized leader in the ownership, management, acquisition and development of retail properties. The Company combines a national real estate portfolio with an investment grade balance sheet, leveraging its expertise across the entire shopping center sector to increase cash flow through rigorous management of assets and provide new opportunities to retailers looking for growth throughout the U.S. Trademark registration for the name Washington Prime Group is pending. Learn more at www.washingtonprime.com.
Forward-Looking Statements
This news release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 which represent the current expectations and beliefs of management of Washington Prime Inc. (“WPG”) concerning the proposed transactions, the anticipated consequences and benefits of the transactions and the targeted close date for the transactions, and other future events and their potential effects on WPG, including, but not limited to, statements relating to anticipated financial and operating results, the company’s plans, objectives, expectations and intentions, cost savings and other statements, including words such as “anticipate,” “believe,” “plan,” “estimate,” “expect,” “intend,” “will,” “should,” “may,” and other similar expressions. Such statements are based upon the current beliefs and expectations of WPG’s management, and involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of WPG to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, without limitation: changes in asset quality and credit risk; ability to sustain revenue and earnings growth; changes in political, economic or market conditions generally and the real estate and capital markets specifically; the impact of increased competition; the availability of capital and financing; tenant or joint venture partner(s) bankruptcies; the failure to increase mall store occupancy and same-mall operating income; risks associated with the acquisition, development, expansion, leasing and management of properties; changes in market rental rates; trends in the retail industry; relationships with anchor tenants; risks relating to joint venture properties; costs of common area maintenance; competitive market forces; the level and volatility of interest rates; the rate of revenue increases as compared to expense increases; the financial stability of tenants within the retail industry; the restrictions in current financing arrangements or the failure to comply with such arrangements; the liquidity of real estate investments; the impact of changes to tax legislation and WPG’s tax positions; failure to qualify as a real estate investment trust; the failure to refinance debt at favorable terms and conditions; loss of key personnel; material changes in the dividend rates on securities or the ability to pay dividends on common shares or other securities; possible restrictions on the ability to operate or dispose of any partially-owned properties; the failure to achieve earnings/funds from operations targets or estimates; the failure to achieve projected returns or yields on development and investment properties (including joint ventures); expected gains on debt extinguishment; changes in generally accepted accounting principles or interpretations thereof; terrorist activities and international hostilities; the unfavorable resolution of legal proceedings; the impact of future acquisitions and divestitures; assets that may be subject to impairment charges; significant costs related to environmental issues; and other risks and uncertainties, including those detailed from time to time in WPG’s statements and periodic reports filed with the Securities and Exchange Commission, including those described under “Risk Factors”. The forward-looking statements in this communication are qualified by these risk factors. Each statement speaks only as of the date of this press release and WPG undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events or circumstances. Actual results may differ materially from current projections, expectations, and plans, if any. Investors, potential investors and others should give careful consideration to these risks and uncertainties.
