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Harleysville Nat'l helps fund PREIT malls

Harleysville National Corp., the largest bank still based in the Philadelphia area, is joining national giants Citi, Wells and National City in a $40 million credit for Pennsylvania Real Estate Investment Trust, which owns the Plymouth Meeting, Willow Grove, Gallery, Cherry Hill malls and others.

    by Joseph N. DiStefano
    Published 

Harleysville National Corp., the largest bank still based in the Philadelphia area, is joining national giants Citigroup and National City Corp. in lending a total of $40 million to Pennsylvania Real Estate Investment Trust, which owns the Plymouth Meeting, Willow Grove, Exton, Gallery, Cherry Hill, Moorestown, and Voorhees malls, among others.

Citi and NatCity already lent to PREIT, but it's the first time for Harleysville, said PREIT spokeswoman Nurit Yaron. 

  Update-- PREIT may be bigger than the average mid-Montco shopping strip. But "we've known PREIT and (PREIT president) Ed Glickman for a long time. We've been looking for ways to work together. This decision was a result of a year of talking to Ed," said Harleysville CEO Paul Geraghty.

  "It's a natural fit for Harleysville, says bank spokewoman Taryne Williams: "We've been in the commerical real estate arena for most of our 90-plus-year history," especially since ex-Sovereign Bank lender Gary Fox took over as head of commercial real estate two years ago. 

  "We have been, and remain, open for business for creditworthy borrowers," Williams added. Geraghty said the bank is using that theme, amid the credit crisis, to prospect for new customers.
 
  The new PREIT borrowing is priced at Libor plus 2.5%. Another $130 million in earlier PREIT debt (by Wells Fargo & Co., Citi, NatCity and others) has been refinanced at 5.3%. Release here.