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PREIT Closes on $250-Mil Credit and Construction Financing

NEW YORK CITY-The construction financing is designed for shopping center projects in the predevelopment stage. The firm now has four such ventures underway with about 1.2 million sf of gross leaseable space.

By John Howe | Updated on January 05, 2001

NEW YORK CITY-Pennsylvania Real Estate Investment Trust has refinanced its line of credit with a new $250-million combined revolving credit and construction finance facility led by Wells Fargo National Association. Secured initially by a portfolio of 10 PREIT retail and industrial properties, the revolving credit facility has a term of three years and bears interest between 1.3% and 1.8% over LIBOR. With the approval of the lenders, the initial term may be extended for a fourth year or converted by the company into a two-year amortizing term loan at the beginning of the third year.

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.

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