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Thursday, 09 November 2000

Mid-Atlantic Regional Digest (11/10/00): Prime Retail offered rescue package from founder

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November 10, 2000

Ailing REIT receives a rescue offer
Baltimore Sun, November 10

BALTIMORE – Michael Reschke and a group of investors have offered to rescue Prime Retail Inc. with a financing package that includes a $100 million loan. The group would provide a five-year loan, as well as $30 million in equity aimed at helping the REIT reduce its considerable debt. The group would also buy a majority of the real estate investment trust's common and preferred stock, according to an SEC filing. Credit Suisse First Boston has agreed in principal to finance Reschke and his partners in the deal. Ultimately, the group would seek to take the company private. Prime Retail is saddled with more than $1 billion in debt as a result of its rapid growth and has been flirting with bankruptcy since defaulting last summer on a $20 million loan. E-Outlets Resolution, the firm's wholly owned subsidiary and Internet mall business, recently filed for Chapter 7 bankruptcy. It was not clear immediately whether Prime Retail's board was taking Reschke's offer seriously. Prime Retail spokesman Steven Sless said there have been a number of such SEC filings in recent months and it is the company's policy not to comment on them. He also noted that Reschke was acting independently in making the filing.

A shopping center with much more than shops
Philadelphia Inquirer, November 10

EXTON, Pa. – Developer Steven Wolfson will begin construction in January on a $100 million shopping center. The 800,000-square-foot Main Street at Exton is 80 percent pre-leased with such retailers as Barnes & Noble, Old Navy, Zany Brainy, Bed, Bath & Beyond and Food Source. The center, at the southwest corner of Routes 30 and 100, will house 50 stores and several restaurants. Main Street will also have a 125,000-sf office building and a 200-room hotel and conference center, as well as a movie theater, Wal-Mart and Sam's Club stores, a new municipal complex for the township, and a five-acre park. The project should be completed within 18 months.


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Additional Info

  • Syndicate to Realpoint: No
  • States: Maryland, Pennsylvania
  • Subject: Mid-Atlantic Regional Digest (MADIG)
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