December 3, 1997
The Rouse Company today announced that it has signed a contract to purchase Moorestown Mall, a major regional shopping center in Burlington County, N.J. Closing of the transaction is scheduled for mid-December.
Originally opened for business in 1963, Moorestown Mall underwent a partial renovation in 1986 and was totally renovated in 1993 and 1994. The mall is currently 75% leased, with 115 tenants occupying 258,000 square feet of small store leasable area and three anchor department stores -- Strawbridge's (191,000 square feet), Boscov's (203,000 square feet) and Sears (171,000 square feet) -- plus a seven-screen United Artists Theatre. Auto centers operated by Sears and Goodyear are located in freestanding buildings. The shopping center's small store space produced sales approaching $260 per square foot in 1996.
"This acquisition is an important strategic initiative for our company in the South Jersey market," said The Rouse Company's Chairman of the Board and CEO Anthony W. Deering. "Once the acquisition is complete, we expect to evaluate the feasibility of expanding the mall. The expansion planning, which was begun by the seller, includes a larger Strawbridge's, one or two new fashion-oriented anchor department stores and additional small store space. "
The acquisition of Moorestown Mall strengthens The Rouse Company's already- commanding presence in the affluent South Jersey market and in the larger Philadelphia MSA, the nation's fifth largest metropolitan area, with a population of about five million people. The Company owns three other enclosed regional centers in southern New Jersey--Cherry Hill Mall, Echelon Mall and Burlington Center--and three Philadelphia-area shopping centers--The Gallery at Market East, Plymouth Meeting and Exton Square.
The potential of this larger market is demonstrated by the scale of development recently completed or underway at The Rouse Company's properties in the area. A new JCPenney opened at Burlington Center in 1996 and a new Sears is currently under construction at Echelon Mall. At Plymouth Meeting, Boscov's opened a new store late last year, and the additions of a cinema, three specialty anchors, two restaurants and a complete interior renovation are in progress. Public processing is complete and construction should start in early 1998 on the redevelopment of Exton Square to include a renovated Strawbridge's, three new anchors (Boscov's, Sears and JCPenney), about 100,000 square feet of new small store space and a total interior renovation.
The Rouse Company -- a public company for 40 years (NYSE: "RSE") -- was founded more than 58 years ago and operates more than 250 properties encompassing office, retail, research and development, industrial and hotel space. The Rouse Company manages properties in 25 states, the District of Columbia and Canada and is the developer of the cities of Columbia, Md. and Summerlin, Nev.-30-
David L. Tripp
Vice President and Director, Investor Relations
10275 Little Patuxent Parkway
Columbia, Maryland 21044
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