Owner of 3 South Jersey Malls Desperate to Get Out of Debt
The owner of three shopping malls in South Jersey appears to be taking drastic measures to rid itself of hundreds of millions of dollars of debt.
PREIT, owner of Cumberland Mall in Vineland, as well as Cherry Hill Mall and Moorestown Mall in Burlington County, reportedly plans to sell off some of its property to raise $350M to help get the Philly-based investment trust out of the red.
The move, PREIT says, is “a key strategic priority to strengthen PREIT’s financial flexibility."
One of the properties going on the block is a stretch of parking lots on site at Moorestown Mall that would be developed into a hotel and apartments, according to Courier Post.
PREIT, who also has stake in the Gloucester Twp. Premium Outlets in Blackwood, is also preparing to get rid of a dozen other pieces of land to build up more capital, but no more here in South Jersey...so far.
The company has been bleeding money over the last several years, Courier Post reports, to the tune of $600 million. However, in a recent statement, PREIT sounds optimistic it can turn things around with the help of consumers, observing what it calls, "meaningful increases in shopper traffic over the holiday season, building on strong sales during the early shopping season in October and November."