The $23.05-a-share offer, which consists of $19.05 a share plus a $4.00 special dividend to be paid prior to the the deal’s completion, is about 13 percent more than Parkway’s closing price on June 29.
(Bloomberg)—Canada Pension Plan Investment Board agreed to buy Parkway Inc., a real estate investment trust with properties in the Houston area, for $1.2 billion.
The $23.05-a-share offer, which consists of $19.05 a share plus a $4.00 special dividend to be paid prior to the the deal’s completion, is about 13 percent more than Parkway’s closing price on June 29, the companies said in a statement Friday. Parkway’s board has unanimously approved the transaction. TPG Capital and its affiliates, which own about 9.8 percent of the REIT, have agreed to vote in favor of the deal.
“Parkway fits well with CPPIB’s long-term real estate strategy to hold stable, high-quality assets in large U.S. markets,” Hilary Spann, the pension’s head of U.S. real estate, said in the statement. “Through this investment, CPPIB gains additional scale in Houston.”
Parkway has 19 office properties in the Houston area that were 88 percent leased as of March 31, according to the statement.
To contact the reporter on this story: Christine Maurus in New York at cmaurus@bloomberg.net To contact the editors responsible for this story: Daniel Taub at dtaub@bloomberg.net Alan Mirabella
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