Echelon Mall Owner Announces Voorhees Town Center Redevelopment on Track.

PREIT Completes the Transfer of Two Land Parcels for Development of Residential Condominiums and Apartments

PHILADELPHIA -- Pennsylvania Real Estate Investment Trust (NYSE: PEI) announced today that it completed a ground lease and sale for two parcels of land to a joint venture of Dewey Companies and Grosvenor Investment Management at its Echelon Mall property in Voorhees, New Jersey.

As previously announced, PREIT is transforming Echelon Mall into Voorhees Town Center; a mixed-use town center that will feature a 65,000 square foot supermarket, 130,000 square foot of lifestyle street retail stores amidst a new landscaped boulevard and public spaces that will offer 425 luxury residential condominium and apartment units. Dewey Commercial will be developing 108 condominium units on the purchased parcel and 317 apartment units on the ground lease parcel.

Grosvenor Investment Management of Philadelphia (formerly Legg Mason Real Estate Services Inc.), on behalf of a pension fund client, has provided $14.5 million in a joint venture partnership with Dewey to develop the residential portion of the project.

As a component of the transformation of the property into Voorhees Town Center, PREIT will renovate the newly downsized mall and reposition it as The Mall at Voorhees Town Center. The mall will house 253,000 square feet of small specialty shops along with anchor stores Macy's (224,000 sf) and Boscov's (173,000 sf).

Joseph Coradino, President of PREIT Services LLC and PREIT-RUBIN Inc. commented: "With this transaction, we mark the beginning of Voorhees Town Center as a vibrant project that will blend residential and retail harmoniously and serve the community in a new and exciting way. We are pleased to have Dewey Commercial as our residential partner with their reputation as a leader in multi-family residential communities. We are also thrilled to continue to serve Echelon Mall's loyal shopper base through reinventing the Mall and adding new retail formats creating a vibrant town center for the residents of Voorhees and the surrounding communities to enjoy."

Construction on the redevelopment will begin next month with the demolition of the former Sears store. Plans call for the mall renovation to be completed by Holiday 2007. The Town Center's Grand Opening is slated for late spring/early summer 2008.

About Pennsylvania Real Estate Investment Trust

Pennsylvania Real Estate Investment Trust, founded in 1960 and one of the first equity REITs in the U.S., has a primary investment focus on retail shopping malls and power centers (approximately 34.6 million square feet) located in the Mid-Atlantic region or in the eastern United States. PREIT's portfolio currently consists of 51 properties in 13 states. PREIT's portfolio includes 39 shopping malls, 11 strip and power centers and one office property. PREIT is headquartered in Philadelphia, Pennsylvania. PREIT's website can be found at www.preit.com. PREIT is publicly traded on the NYSE under the symbol PEI.

About The Dewey Companies, LP

The Dewey Companies, LP is an integrated real estate development company active in developing for-sale residential property as well as owning, developing, and managing multi-family rental, commercial, and industrial property. The company was founded in 1990 as Dewey Homes by John and Ken Dewey with the original purpose of developing for-sale residential single-family homes in the suburban Philadelphia market. Dewey Homes has built over 1000 homes focusing on starter, move -up and luxury segments throughout the suburban Philadelphia market. In 2001, it was decided to diversify the business beyond homebuilding. Today, the company is comprised of three operating companies: Dewey Homes, LP, Dewey Commercial Investors, LP and Dewey Land, LP. Dewey Commercial Investors develops income producing properties and specializes in multi-family projects as well as multi-use developments.

About Grosvenor Investment Management

GIM, formerly Legg Mason Real Estate Services Inc., was acquired by Grosvenor on March 31, 2006. Based in Philadelphia, GIM now serves as Grosvenor's real estate investment management operation in North America. GIM is part of Grosvenor Fund Management, which was established in 2005 as a vehicle for third-party participation in Grosvenor-managed investments. As of June 30, 2006, Grosvenor Fund Management (including GIM) had total funds under management of over $5.4 billion internationally on behalf of 50 third-party investors. Grosvenor is a privately owned international property group, representing the interests of the Grosvenor family headed by the Duke of Westminster. Grosvenor manages or has interests in approximately $17.3 billion of real estate in 17 countries. For more information, please visit the Company Web site at: www.grosvenor.com.

This press release contains certain "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements relate to expectations, beliefs, projections, future plans, strategies, anticipated events, trends and other matters that are not historical facts. These forward-looking statements reflect PREIT's current views about future events and are subject to risks, uncertainties and changes in circumstances that might cause future events, achievements or results to differ materially from those expressed or implied by the forward-looking statements. More specifically, PREIT's business might be affected by uncertainties affecting real estate businesses generally as well as the following, among other factors: general economic, financial and political conditions, including changes in interest rates or the possibility of war or terrorist attacks; changes in local market conditions or other competitive or retail industry factors in the regions where our properties are concentrated; PREIT's ability to maintain and increase property occupancy and rental rates, and risks relating to development or redevelopment activities, including construction, obtaining entitlements and managing multiple projects simultaneously. In particular, the successful redevelopment of Echelon Mall is subject to a number of risks, including, among others, that PREIT's redevelopment plans might change, its redevelopment activities might be delayed and anticipated project costs might increase. Unanticipated expenses or delays would also adversely affect PREIT's investment returns on the Echelon Mall redevelopment project. Additionally, there can be no assurance that PREIT's actual results will not differ significantly from the estimates set forth above, or that PREIT's returns on its developments, redevelopments or acquisitions will be consistent with the estimates outlined in the related press releases or other disclosures. Investors are also directed to consider the risks and uncertainties discussed in documents PREIT has filed with the Securities and Exchange Commission and, in particular, PREIT's Annual Report on Form 10-K for the year ended December 31, 2005. PREIT does not intend to update or revise any forward-looking statements to reflect new information, future events or otherwise.