The construction facility is designed for shopping center developments in the predevelopment phase, of which PREIT now has four with approximately 1.2 million sf of gross leaseable space and a projected aggregate cost of about $70 million. The structuring of this refinancing is designed to expedite the availability of development financing and promote quicker project completions.

Last December, the company, in anticipation of the new credit facility, entered into two three-year interest swap agreements covering a notional $75 million under which it will pay a blended fixed rate of approximately 6% against the receipt of one-month LIBOR. These arrangements complement the firm's $20-million swap agreement, which expires next June and under which it pays 6.12% against the receipt of one-month LIBOR.

Established in 1960 and one of the first equity real estate investment trusts in the US, PRIET specializes in shopping centers in the eastern US. It has 45 properties in 10 states and six retail projects under development.