PREIT Sells South Mall, Agrees to Sell Two Other Properties

PHILADELPHIA—Locally-based Pennsylvania Real Estate Investment Trust reports today that it has closed on the previously announced $23.6-milion sale of the South Mall in Allentown, PA. The company also reveals it has entered agreements to sell the Nittany Mall in State College, PA and the North Hanover Mall in Hanover, PA.

The sales deasl for the Nittany Mall and North Hanover involve the disposition of the company's last non-core mall properties, company officials say. The announcement did not divulge the buyer of the South Mall or the parties that have entered into contracts with PREIT to acquire the Nittany and North Hanover malls.

"The successful completion of the sale of South Mall, coupled with our agreement to sell Nittany and North Hanover Malls, is a significant step for PREIT," says Joseph F. Coradino, CEO of PREIT. "We have made meaningful strides in reconstituting and elevating PREIT's portfolio quality, particularly at a time when the market is inundated with lower quality assets for sale. With the near completion of our disposition program, we are keenly focused on successfully operating our higher-quality properties, which have the most potential for long-term value creation and strong operating results.”

In total, PREIT's disposition program has generated more than $250 million since its inception in 2012. Proceeds from the South Mall transaction, net of closing costs, settlement pro-rations and credits, were approximately $23.1 million, the company states.

South Mall is a 406,000-square-foot mall anchored by SteinMart and Bon Ton. Sales at South Mall were $227 per square foot and non-anchor occupancy was 90.6% as of March 31, 2014. Nittany Mall is a 534,000-square-foot mall anchored by jcpenney, Sears, Bon Ton and Macy's. Sales at Nittany Mall were $230 per square foot and non-anchor occupancy was 75.8% as of March 31, 2014. The North Hanover Mall is a 452,000-square-foot mall anchored by jcpenney, Sears, Dick's Sporting Goods and a new Burlington Coat Factory. Sales at North Hanover were $275 per square foot and non-anchor occupancy was 79.3% as of March 31, 2014.

Currently, PREIT's portfolio of 42 properties comprises 34 shopping malls, five community and power centers, and three development properties and are located in 12 states in the eastern half of the United States, primarily in the Mid-Atlantic region. The operating retail properties have approximately 30.1 million total square feet of space.