PREIT and Cooper University Health Care Finalize Transaction for Moorestown Location
PHILADELPHIA, May 19, 2021 /PRNewswire/ -- PREIT (NYSE: PEI), a leading operator of diverse retail and experiential destinations, today announced the finalization of transactions associated with bringing Cooper University Health Care to Moorestown Mall, one of the Company's key High Barrier-to-Entry market properties.
This addition represents a continued, strategic shift in PREIT's mix of tenancy across its properties, curating diverse and expansive environments marked by a healthy mix of multifamily housing, hotels, entertainment, dining, health & wellness, working space, and local small business retail.
Cooper University Health Care, a leading academic health system in the southern New Jersey and Philadelphia region, will open a specialty care facility in the former Sears location at Moorestown Mall occupying over 165,000 square feet. With this addition and the apartments and hotel planned for the site, the property will further evolve its mix to create a one-stop hub, including dining, entertainment, fitness, a broad array of retail options and now, a premier outpatient healthcare facility.
"This addition furthers PREIT's strategic efforts to attract innovative tenants and redefine our high barrier-to-entry portfolio with a unique mix of uses that serves our communities," said Joseph F. Coradino, CEO of PREIT. "With a solid retail core, the Moorestown community will benefit from the addition of a variety of new uses producing a broader customer base and a stronger business model. We're thrilled to work with our partners at Cooper University Health Care to make high-quality healthcare services accessible and convenient for patients and their families at this new location."
PREIT's high barrier-to-entry market portfolio is comprised of its Philadelphia and DC suburban properties. These markets are characterized by dense population and a scarcity of well-located land. PREIT properties are well situated with ample parking and access to millions of customers through major road networks, making them attractive to an array of uses. As these locations evolve to become micro-communities, the uses attracted to the portfolio include life sciences, medical and other office uses, grocers, big box and other open-air tenancy, fulfillment, fitness and storage in addition to apartments, senior housing and hotels. This initiative capitalizes on bullseye locations to produce a broader consumer base, create stronger business models and provide greater market flexibility.
Over the course of the past decade the Company has made steady progress towards this transformation, reimagining its mall properties through the introduction of a variety of uses including entertainment venues, extensive dining programs, off-price and value purveyors, fitness centers and traditional open-air tenancy. Cooper will join other unique tenancy at Moorestown, including leading off-price retail purveyors, traditional retail, dining and entertainment options, creating a one-stop hub fulfilling customer needs from convenience to fun.
PREIT (NYSE:PEI) is a publicly traded real estate investment trust that owns and manages distinctive real estate in high barrier-to-entry markets at the forefront of shaping consumer experiences through the built environment. PREIT's robust portfolio of carefully curated retail and lifestyle offerings mixed with destination dining and entertainment experiences are located primarily in densely-populated, high barrier-to-entry markets with tremendous opportunity to create vibrant multi-use destinations. Additional information is available at www.preit.com or on Twitter 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 forward-looking 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, 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 consolidation and store closings, particularly among anchor tenants; current economic conditions, including the impact of the COVID-19 pandemic and the steps taken by governmental authorities and other third parties to reduce its spread, and 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; acts of violence at malls, including our properties, or at other similar spaces, and the potential effect on traffic and sales; 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, 2020 and in our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2021. We do not intend to update or revise any forward-looking statements to reflect new information, future events or otherwise.
EVP, Strategy and Communications
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