Friday, September 9, 2011

Parkway Sells Non-Core Asset in Columbia, SC



 JACKSON, MS /PRNewswire/ -- Parkway Properties, Inc. (NYSE: PKY) announced the sale of Tower at 1301 Gervais (top left photo) ("the Property") for a gross sale price of $19.5 million. 

Tower at 1301 Gervais is a 298,000 square foot office property located in the central business district of Columbia, South Carolina.  The building was 92.7% occupied as of September 1, 2011. 

Steven G. Rogers (middle right photo), President and Chief Executive Officer of Parkway stated, "The sale of Tower at 1301 Gervais resulted in a significant amount of cash proceeds which will contribute to our continuing efforts to improve our balance sheet.  With the sale of this property, we now own one asset totaling 108,000 square feet in Columbia, which we have identified as a non-core market."

 The Company estimates the gross sale price for the Property represents a capitalization rate of approximately 9.4%, which is based on projected in-place cash net operating income for the 12 month period following the closing date, including the impact of contractual rent abatements. 

The property was unencumbered with debt at the time of the sale.  Parkway received approximately $17.9 million in net proceeds at closing, which were used to reduce amounts outstanding under the Company's credit facility.

Parkway Properties, Inc., a member of the S&P Small Cap 600 Index, is a self-administered real estate investment trust specializing in the operation, leasing, acquisition, and ownership of office properties.  Parkway owns or has an interest in 67 office properties located in 12 states with an aggregate of approximately 14.5 million square feet of leasable space as of September 8, 2011.

  Included in the portfolio are 26 properties totaling 6.6 million square feet that are owned jointly with other investors, representing 45.5% of the portfolio.

Fee-based real estate services are offered through wholly-owned subsidiaries of the Company, which in total manage and/or lease approximately 12.9 million square feet for third-party owners at September 8, 2011.

Parkway Properties, Inc.'s press releases and additional information about the Company are available on the Company's website at www.pky.com.

Contact:
Steven G. Rogers, president and chief executive officer or
Richard G. Hickson IV, chief financial officer, (601) 948-4091




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