As part of its strategic plan to "dispose of non-core properties in order to strengthen its balance sheet by reducing debt," Pennsylvania Real Estate Investment Trust (NYSE: PEI ) announced today it has completed the sales of two properties, generating combined proceeds of $87.3 million.
The gain on the two sales, according to PREIT, is approximately $45.4 million and represents a 6.8% "blended cap rate." Proceeds will be used to pay down debt and for general corporate purposes.
The two separate transactions included the sale of PREIT's Christiana Center in Newark, Del., and the Commons at Magnolia located in Florence, S.C. In addition to the sales proceeds, PREIT noted in its statement that the unnamed buyer of the Christiana Center also assumed the property's $49.2 million mortgage.
CEO Joseph Coradino said in the company's statement, "PREIT has strategically reduced its debt by $359.0 million in 2013, funded primarily through non-core asset dispositions and a successful common equity offering."