PREIT Announces Remarkable Leasing Progress at Springfield Town Center Including Top Fashion Brands and Luxury Amenities

PHILADELPHIA, Oct. 14, 2014 /PRNewswire/ -- PREIT (NYSE: PEI) today announced the leasing progress for Springfield Town Center, a premier mall property located in Fairfax County, Virginia. The property, after undergoing a striking redesign and renovation, is grand re-opening on October 17, 2014. 

Springfield Town Center will open at approximately 81% total occupancy, including anchors, with non-anchor occupancy over 60%.  On opening day, more than 80% of the non-anchor space will have tenant commitments (consisting of executed leases and leases being negotiated). Prior to the 2014 Holiday Season, approximately 50,000 square feet of additional stores are expected to open.  Non-anchor occupancy is expected to increase to over 90% by the end of 2015.

The yield in 2018, the first stabilized year, is anticipated to be approximately 6.7%.  The anticipated yield separately values the property's development rights at approximately $80 million and factors in the estimated value of the one-time earnout payment to be made to Vornado in 2018.  PREIT expects to complete the acquisition on March 31, 2015.

"We are extremely excited to open Springfield Town Center which, upon integration into our portfolio, will underscore the remarkable progress we have made in creating a high quality mall portfolio," said PREIT CEO, Joseph F. Coradino. "Since announcing our strategic objectives in November 2012, we have strengthened our portfolio quality and balance sheet and with the sale of 11 properties, including 6 non-core malls, raising over $400 million in proceeds.  We are experiencing the benefits of a high-quality portfolio that is compelling to retailers, generating solid NOI growth and increasingly strong renewal spreads.  At the same time, we have created compelling opportunities to grow by entering into agreements that minimize execution risks associated with the acquisition of Springfield Town Center and redevelopment of The Gallery in Philadelphia. We are confident in PREIT's  platform and will continue to execute on our proven strategy to deliver strong returns for our shareholders."

Among the outstanding design features, patrons will find a new grand entrance lined with restaurants and outdoor dining, a completely redesigned layout enabling better retailer accessibility and visibility, new finishes and unique gathering spaces and amenities, including:

• A beautiful food court featuring an indoor/outdoor patio area with a two-sided fireplace and a retractable wall that allows for open air dining
• A children's play area adjacent to the food court as well as a dedicated children's court with a library of books, puzzles, and games designed with soft seating for storytime and other events
• Entertainment in the form of a 12-screen Regal Cinema featuring powered reclining seats and a cocktail lounge
• Same-day delivery and bagless shopping powered by Deliv, using crowdsourced delivery teams, that will be in place for the Holiday Season
• Phone charging stations and free wi-fi access
• Sustainable elements include electronic vehicle charging stations along with smart meters, lighting controls and building automation system

"The high-quality, dynamic roster of tenants and amenities at Springfield Town Center will ensure a vibrant, comprehensive shopping experience that we are confident the community will embrace," continued Mr. Coradino. "Springfield Town Center will offer an environment that is conducive to customer socialization, extended visits and the creation of memorable experiences, which will ensure its success.  Simply put, Springfield Town Center has it all."

Following is a list of executed leases for the property (* denotes tenants with executed leases that will open after October 17, 2014).

About Pennsylvania Real Estate Investment Trust
PREIT is a real estate investment trust specializing in the ownership and management of differentiated retail shopping malls designed to fit the dynamic communities they serve.  Founded in 1960 as Pennsylvania Real Estate Investment Trust, the Company owns and operates over 30 million square feet of space in properties in 12 states in the eastern half of the United States with concentration in the Mid-Atlantic region and Greater Philadelphia.  PREIT is headquartered in Philadelphia, Pennsylvania, and is publicly traded on the NYSE under the symbol PEI.  Information about the Company can be found at www.preit.com or on Twitter or LinkedIn.

CONTACT AT THE COMPANY
Heather Crowell
VP, Corporate Communications and Investor Relations
(215) 454-1241
[email protected]

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SOURCE PREIT

Related Links

http://www.preit.com

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