HOUSTON — The Canada Pension Plan Investment Board has agreed to acquire Parkway Inc., one of Houston’s largest property owners, for $1.2 billion, or $23.05 per share. The deal is expected to close in the fourth quarter of 2017.
Parkway’s portfolio includes roughly 8.7 million square feet of office space in the Houston market. Signature holdings include the 1.3 million-square-foot Post Oak Central, the 627,000-square-foot Phoenix Tower, the 980,000-square-foot San Felipe Plaza and the 1.5 million-square-foot CityWest Place in the Westchase submarket. In addition, Parkway holds a 51 percent interest in the 4.4 million-square-foot Greenway Plaza complex.
Earlier this year, Parkway sold a 49 percent interest in both Greenway Plaza and Phoenix Tower to a group of institutional investors. Affiliates of TH Real Estate, Silverpeak Real Estate Partners and the Canada Pension Plan Investment Board jointly purchased that minority stake and formed a joint venture to manage those assets.
Parkway Inc. was formed last year following Cousins Properties’ acquisition of Parkway Properties. As part of that transaction, the Houston assets were separated and organized into the independent Parkway Inc., a company focused exclusively on Houston office properties.
June 30, 2017 Realty News Report Copyright 2017