After facing its second bankruptcy in three years, Pennsylvania Real Estate Investment Trust (PREIT), the owner of several South Jersey shopping centers including Cherry Hill and Moorestown malls, has announced its emergence from restructuring with fresh leadership and a revamped organizational structure.
Following the Chapter 11 bankruptcy filing in December, PREIT has transitioned into a private entity managed by a select group of investment firms. With this change, the company has introduced new leadership, bidding farewell to CEO Joseph F. Coradino, who served in the position for 12 years. Coradino will remain as a consultant during the leadership transition. Additionally, PREIT has appointed a new board, replacing its former members.
Despite its longstanding financial challenges, Cherry Hill Mall has remained a standout asset for PREIT, while the redevelopment of Moorestown Mall has been viewed as a promising endeavor by previous leadership. Notably, the addition of Cooper University Health Care’s outpatient facility at Moorestown Mall, along with plans for a large apartment complex and family entertainment center, signals growth opportunities for the property.
PREIT’s financial trajectory has seen highs and lows over the years. From thriving in the mid-2000s to facing significant stock value declines during the Great Recession, the company has experienced fluctuations in its market performance. The impact of the pandemic further exacerbated PREIT’s financial strain, leading to its second bankruptcy filing in December 2020.
As part of the restructuring process, PREIT underwent significant changes, including becoming a private entity and relinquishing its stake in the Fashion District Philadelphia shopping mall. The company also managed to reduce its debt by $880 million and extend the repayment timeline for its loans.
With new leadership at the helm, including CEO Jared Chupaila, who previously held the same role at Brookfield Properties, PREIT is poised to navigate its path forward with a focus on revitalizing its assets and strengthening its position in the real estate market. Led by investment firms Redwood Capital Management LLC and Nut Tree Capital Management, PREIT aims to chart a course toward financial stability and sustained growth.
