PRESS RELEASE
PREIT Realty, LLC (“PREIT“), a leading owner and operator of retail real estate located in the eastern half of the United States, announced today that it has successfully concluded its financial and corporate restructuring and emerged from bankruptcy through an expedited process. The reorganization sets up PREIT with a stronger and leaner balance sheet.
The pre-packaged reorganization plan (the “Plan“) was supported by 100% of PREIT’s secured lenders. Through the Plan, PREIT reduced its total debt by approximately $835 million, extended its maturity runway, and received commitments of approximately $130 million of new money debtor-in-possession financing and exit revolver financing from a diverse group of leading investors, led by Redwood Capital Management, LLC and Nut Tree Capital Management, LP. Trade creditors and property level mortgage debt were unaffected by the restructuring. Under the Plan, PREIT’s existing equity interests, including $384 million of preferred equity interests, were extinguished in exchange for a $10 million cash distribution.
As a result of its corporate reorganization and consolidation of equity holders, PREIT is no longer an SEC reporting company.
As part of the Plan, PREIT negotiated a release of guarantees associated with the Fashion District Philadelphia (“FDP“) joint-venture, under which PREIT transferred its equity interest in FDP to its JV partner, Macerich, in exchange for a full and complete release and an indemnification of any claims that PREIT may owe under its guaranties issued in connection with the FDP Loan Agreement.
In support of its go-forward business plan, PREIT is also announcing certain changes to its management and Board.
Joseph F. Coradino spent over 40 years with the Company in various capacities, having held the title of Chief Executive Officer since 2012. During that time, Mr. Coradino guided the transformation of the Company’s portfolio through asset sales and redevelopment projects and navigated challenging global financial conditions as well as the extended impact of the COVID-19 pandemic on the mall industry. Mr. Coradino led PREIT through its comprehensive financial and corporate restructuring as discussed above, and now that such restructuring has been successfully completed, Mr. Coradino will no longer serve as Chief Executive Officer and trustee of PREIT, effective as of April 1, 2024. Mr. Coradino will continue to serve in a consultant capacity to the Company to assist with a seamless transition.
PREIT’s Board of Managers has appointed Jared Chupaila to succeed Mr. Coradino as Chief Executive Officer effective immediately. Mr. Chupaila will also serve as a Member of the Board.
Jared Chupaila has over 20 years of experience in commercial real estate executive leadership, corporate strategy, asset management, and leasing and operations. Mr. Chupaila most recently served as Chief Executive Officer of Brookfield Properties retail real estate vertical (formerly GGP, Inc.), where he oversaw the company’s U.S. portfolio of more than 150 retail centers spanning 150 million square feet across 43 states, totaling approximately $60 billion in assets under management. Prior to his position as Chief Executive Officer, Mr. Chupaila served as Chief Operating Officer of Retail at Brookfield Properties, Executive Vice President, Leasing at GGP, Inc., and, before that, various leadership roles across GGP, Inc., The Rouse Company, and The Howard Hughes Corporation.
In addition to the appointment of a new CEO, Glenn J. Rufrano has been appointed as Executive Chairman of the Board of Managers effective immediately, and will work alongside current Board Members, Vishal Chanani of Redwood Capital Management, LLC and Eric Hsiao of Nut Tree Capital Management, LP.
Mr. Rufrano has over 35 years of experience specializing in stabilizing and repositioning publicly traded and private real estate companies. Mr. Rufrano most recently served as the Chairman of the International Council of Shopping Centers, Inc. (ICSC). Prior to this, Mr. Rufrano served as Chief Executive Officer of VEREIT, Inc., a real estate investment trust which owned nearly 90 million square feet of retail property in the U.S. at the time of its merger with Realty Income Corporation, President and Chief Executive Officer of Cushman & Wakefield Inc., one of the world’s largest commercial real estate services companies, Chief Executive Officer of Centro Properties Group, an Australian public LPT, which owned 22 million square feet of retail property in Australia and 100 million square feet in the U.S., Chief Executive Officer of New Plan Excel Realty Trust, Inc., and Chairman and CEO, and among the founders, of O’Connor Capital Partners.