Wells Fargo Grows Nervous on Pennsylvania Real Estate Investment Trust
Posted on 10/23/2020
Pennsylvania Real Estate Investment Trust (PREIT) is a publicly traded real estate investment trust that invests in shopping centers mostly in the Mid-Atlantic states. On October 19, 2020, PREIT, PREIT Associates, L.P. and PREIT-RUBIN, Inc. received letters from Wells Fargo Bank, National Association, as administrative agent, regarding alleged events of default with respect to the Seven-Year Term Loan Agreement, dated as of January 8, 2014. Pennsylvania Real Estate Investment Trust responded to Wells Fargo and disputes the lender’s characterization of the situation described in the Reservation Letters and that no breach of the RSA or event of default under any of the Credit Agreements has occurred.
In 2019, Pennsylvania Real Estate Investment Trust turned Wyoming Valley Mall over to its mortgage holder, GS Mortgage Securities Trust, to avoid foreclosure after failing to find a buyer for the property. Pennsylvania Real Estate Investment Trust owed US$ 72.8 million on the loan, which had been in special servicing since July 2018.
In 1997, Pennsylvania Real Estate Investment Trust acquired the Rubin Organization for US$ 260 million. In 2015, Pennsylvania Real Estate Investment Trust acquired Springfield Town Center for US$ 465 million from Vornado Realty Trust.