Pennsylvania Real Estate Investment Trust Acquires Woodland Mall in Grand Rapids, Michigan
Woodland Mall is an approximately 1.1 million square foot regional mall and is anchored by Sears, JCPenney and Marshall Field's. Each of the anchors owns its land and building. The mall has a 14-screen Cinemark movie theater that opened in November 2005 and an adjacent restaurant plaza with one restaurant open and two more restaurants expected to open in early 2006. The mall currently has more than 100 in-line tenants, including Ann Taylor, Apple, Banana Republic, Brookstone, Charlotte Russe, Chico's, Coldwater Creek, Eddie Bauer, JCrew, Fossil, New York & Co., Starbucks and Williams-Sonoma.
“We are very excited about the opportunity to add Woodland Mall to our portfolio. Woodland is a well-located property with a strong tenant mix that will enhance the quality of our portfolio. The property will complement our existing assets and help us expand our geographic footprint.”
Ronald Rubin, PREIT's Chairman and CEO, commented, "We are very excited about the opportunity to add Woodland Mall to our portfolio. Woodland is a well-located property with a strong tenant mix that will enhance the quality of our portfolio. The property will complement our existing assets and help us expand our geographic footprint."
The occupancy for the 394,000 square feet of in-line mall space was reported to be approximately 89.4% as of December 31, 2005, and the mall's sales per square foot were reported to be approximately $374 for the twelve months ended October 31, 2005. PREIT underwrote the acquisition to generate an unleveraged return of approximately 7.9% on purchase price based on anticipated operating income for 2006.
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 retail shopping malls and power centers (approximately 34.5 million square feet) located in the eastern United States. PREIT's portfolio currently consists of 52 properties in 13 states. PREIT's portfolio includes 39 shopping malls, 12 strip and power centers and one office property. PREIT is headquartered in Philadelphia, Pennsylvania. PREIT's website can be found at www.preit.com.
This press release contains certain "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934 and the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and other matters that are not historical facts. These forward-looking statements reflect PREIT's current views about future events and are subject to risks, uncertainties, assumptions and changes in circumstances that may cause future events, achievements or results to differ materially from those expressed by the forward-looking statement. PREIT's business is subject to uncertainties regarding the revenues, operating expenses, leasing activities, occupancy rates, and other competitive factors relating to PREIT's portfolio and changes in local market conditions as well as general economic, financial and political conditions, including the possibility of outbreak or escalation of war or terrorist attacks, any of which may cause future events, achievements or results to differ materially from those expressed by the forward-looking statements. There can be no assurance that the anticipated operating income from Woodland Mall will be realized to achieve the targeted rate of return from this property. PREIT does not intend to and disclaims any duty or obligation to update or revise any forward-looking statements or industry information set forth in this press release to reflect new information, future events or otherwise. Investors are also directed to consider the risks and uncertainties discussed in documents PREIT has filed with the Securities and Exchange Commission and, in particular, PREIT's Annual Report on Form 10-K for the year ended December 31, 2004.