Retail Properties Of America : Halts Vertical Construction Plans At Its Carillon Redevelopment
OAK BROOK, Ill., March 23, 2020 /PRNewswire/ -- Retail Properties of America, Inc. (NYSE: RPAI) (the "Company"), in response to current macroeconomic conditions, has halted plans for vertical construction at its Carillon redevelopment project located in the Washington, D.C. metropolitan statistical area. Relatedly, the Company is evaluating a material reduction in scope and spend for the project.
"Our sound capital allocation discipline enables us to take this step in order to prudently de-risk our overall operating plan, focusing on preservation of our already outstanding balance sheet prior to commencement of any vertical construction at Carillon," stated Steve Grimes, chief executive officer. "While we currently expect to finish sitework preparation this year, we remain aware of the significant demand for the project, which benefits from the medical office needs of the adjacent University of Maryland Capital Region Medical Center, a non-cyclical, shadow anchor of this project. We continue to believe that this project can drive compelling risk adjusted returns when conditions support commencement in the future."
The Company will continue to evaluate the potential resumption date for vertical construction activities at Carillon and will maintain optionality for either the monetization or build-out of components of the project.
The Company also recently bolstered its financial flexibility by drawing $100 million on its existing $850 million unsecured revolving line of credit.
Retail Properties of America, Inc. is a REIT that owns and operates high quality, strategically located open-air shopping centers, including properties with a mixed-use component. As of December 31, 2019, the Company owned 104 retail operating properties in the United States representing 20.0 million square feet. The Company is publicly traded on the New York Stock Exchange under the ticker symbol RPAI. Additional information about the Company is available at www.rpai.com.
Vice President – Capital Markets and Investor Relations
Retail Properties of America, Inc.
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SOURCE Retail Properties of America, Inc.