Pennsylvania Real Estate Investment Trust will relinquish much of its involvement in Fashion District Philadelphia beginning Jan. 1, leaving its partner in the project, Macerich Cos., to control the operations and make decisions involving the Philadelphia retail center, according to Securities and Exchange Commission documents filed by PREIT.
The arrangement arose as part of PREIT amending its loans and credit agreements through a Chapter 11 bankruptcy from which it exited last week and detailed in SEC documents, the Philadelphia Business Journal reports.
As part of the new agreements, a $100 million payment was made and funded by Macerich on a $301 million loan backed by Fashion District Philadelphia. That payment reduced the outstanding principal on a Wells Fargo loan involving Fashion District to $201 million, according to SEC documents. The loan agreement was also modified to mature Jan. 22, 2023, with the potential of a one-year extension.