Parkway Properties Announces Sale of Columbia, SC Asset

JACKSON, MS/PRNewswire-FirstCall/ -- Parkway Properties, Inc. (NYSE:PKY) has closed the fee simple sale of the Capitol Center (top right photo) office property, located in Columbia, South Carolina.

Capitol Center is a 460,000 square foot property that was 97.5% occupied as of September 1, 2008.

The gross sales price was $47.5 million and represents a capitalization rate of approximately 9.5% on twelve months projected cash net operating income from the date of closing.

Parkway received net cash proceeds from the sale of approximately $45.8 million, which were used to prepay the $18.1 million first mortgage plus related mortgage prepayment expenses and reduce amounts outstanding under the Company's line of credit.

The Company will recognize a gain on the sale of approximately $11.7 million and expenses related to the prepayment of the mortgage of approximately $2.2 million in the third quarter of 2008.(

Steven G. Rogers, (middle left photo) President and Chief Executive Officer stated, "With this sale, we have completed the sale of three assets announced in May of 2008, with total gross proceeds of $86.3 million.

"These sales resulted in a net pay down in the Company's line of credit of $62.6 million, and we will recognize a total gain on these sales of $22.6 million in the third quarter of 2008."

CONTACT: Steven G. Rogers, President and Chief Executive Office or J. Mitchell Collins, Chief Financial Officer, 601 948 4091.