PHILADELPHIA, Dec. 13,
2022 /PRNewswire/ -- PREIT (NYSE: PEI), today,
announced that it has obtained unanimous approval from the Fairfax
County Board of Supervisors for the development of 460 apartments
and a 165-room hotel, paving the way for the sale of the land
parcels both of which are under agreement of sale. A key part
of PREIT's capital plan, the sale of these parcels is expected to
generate approximately $20 million
for PREIT, in addition to the $112
million in proceeds the Company has raised from asset sales
in 2022. The Company expects to close on these sales at Springfield
Town Center in Q2 2023 and has another $120
million of asset sales in the pipeline.
Executing on multi-family land sales is a key step for the
Company on multiple fronts. First, they help to create
thoughtful spaces that enhance the property and surrounding
community while supporting a more sustainable future. They
are also critical to PREIT's capital-raising efforts, transforming
underutilized land into valueenhancing real estate.
PREIT's overall vision is to transform Springfield Town Center
into a vibrant, multi-use hub and take advantage of its unrivaled
location to create the preeminent family entertainment destination
in the Washington, DC
market. As part of this transformation, LEGO®
Discovery Center has officially broken ground with an opening
planned for summer 2023. The mall's highly diversified tenant
mix includes traditional retail, top-tier full service dining
destinations, entertainment, fitness and other value retail
offerings.
"We are thrilled to receive a green light on the multi-use
development that was conceived prior to the 2014 mall
redevelopment," said Joseph F.
Coradino, Chairman & CEO of PREIT. "The addition of
apartments and hotel rooms will result in growing our customer base
and delivers value to our existing tenants, while allowing us to
harvest capital from our highly desirable real estate."
Located in the third wealthiest county in the United States, Springfield Town Center is
well-positioned to attract quality retailers and continue to be a
premier shopping destination.
About PREIT
PREIT (NYSE:PEI) is a publicly traded real estate investment
trust that owns and manages innovative properties developed to be
thoughtful, community-centric hubs. PREIT's robust portfolio of
carefully curated, ever-evolving properties generates success for
its tenants and meaningful impact for the communities it serves by
keenly focusing on five core areas of established and emerging
opportunity: multi-family & hotel, health & tech, retail,
essentials & grocery and experiential. Located primarily in
densely-populated regions, PREIT is a top operator of high quality,
purposeful places that serve as one-stop destinations for customers
to shop, dine, play and stay. Additional information is available
at www.preit.com or on Twitter, Instagram 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 forwardlooking 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 effectiveness of strategies we may
employ to address our liquidity and capital resources in the
future, 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 bankruptcies, consolidation and store
closings, particularly among anchor tenants; current economic
conditions, including consumer confidence and spending levels and
supply chain challenges and the impact of the COVID-19 pandemic and
the public health and governmental response as well as 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; social
unrest and acts of vandalism and violence at malls, including our
properties, or at other similar spaces, and the potential effect on
traffic and sales; the frequency, severity and impact of extreme
weather events at or near our properties; 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, 2021. We do not intend to update or
revise any forwardlooking statements to reflect new information,
future events or otherwise.
Contact:
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Heather
Crowell
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heather@gregoryfcacom
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preit@gregoryfcacom
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SOURCE PREIT