Saturday, July 22, 2017

Canada Pension Plan Investment Board Announces Definitive Agreement to Acquire Parkway, Inc.

Hilary Spann

TORONTO, CANADA and HOUSTON, TX /PRNewswire/ -- Canada Pension Plan Investment Board ("CPPIB") and Parkway, Inc. (NYSE: PKY) ("Parkway") announced today that they have entered into a definitive agreement under which CPPIB will acquire 100% of Parkway, a Houston-based real estate investment trust, for US$1.2 billion, or US$23.05 per share.

The transaction is not subject to a financing condition and is expected to close in the fourth quarter of 2017, subject to customary closing conditions, including approval by Parkway's stockholders.
"Parkway fits well with CPPIB's long-term real estate strategy to hold stable, highquality assets in large U.S. markets," said Hilary Spann, Managing Director, Head of U.S. Real Estate Investments, CPPIB.  "Through this investment, CPPIB gains additional scale in Houston."

James R. Heistand
Parkway owns the largest office portfolio in Houston, totaling approximately 8.7 million square feet across 19 properties.

 Located in the desirable areas of Westchase, Greenway and Galleria, the high-quality office properties are 87.6% leased as of March 31, 2017, and anchored by a broad mix of strong tenants in financial services, technology and commodities businesses.

"CPPIB shares our view of the long-term resiliency of the Houston market, and we believe this transaction demonstrates our commitment to enhancing stockholder value," stated James R. Heistand, Parkway's President and Chief Executive Officer.

"We believe there are still some near-term headwinds in the office sector for
Houston, but the implied asset valuation of this transaction shows CPPIB's
appreciation for the high-quality portfolio we have assembled and the near-term
stability it provides during the current downturn in the market."

Canada Pension Plan Investment Board (CPPIB) is a professional investment
management organization that invests the funds not needed by the Canada
Pension Plan (CPP) to pay current benefits on behalf of 20 million contributors and

 For a complete copy of the company’s news release, please contact:

Kristen M. Murphy
Director, Public Relations
HFF | One Post Office Square, Suite 3500 | Boston, MA 02109
Main: 617-338-0990 | Direct: 617-848-1572 | Cell: 617-543-4873 |

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