PREIT completes sale of two power centres
Pennsylvania Real Estate Investment Trust (PREIT) has completed the sales of two power centres in conjunction with the company's plan to dispose of non-core properties.
In two separate transactions, the sales of Christiana Center in Newark, Delaware and Commons at Magnolia in Florence, South Carolina generated combined sales proceeds of USD87.3m and represent a blended cap rate of 6.8 per cent and gains on sales totalling approximately USD45.4m.
In connection with these transactions, the buyer assumed the USD49.2m mortgage loan secured by Christiana Center. The company intends to use the proceeds to make further reductions in debt and for general corporate purposes.
"Upon application of these proceeds, PREIT has strategically reduced its debt by USD359.0m in 2013, funded primarily through non-core asset dispositions and a successful common equity offering," says Joseph F Coradino, chief executive of PREIT. "These dispositions mark another critical step in PREIT's portfolio transformation and in strengthening our financial position."