Parkway Properties, Inc. And Thomas Properties Group, Inc. Complete Merger Valued At $1.2 Billion

Dec 23, 2013 No Comments by

Orlando-based Parkway Properties, Inc. recently announced the completion of the merger with Thomas Properties Group, Inc. valued at approximately $1.2 billion.

The transaction was approved by stockholders of each company at their respective stockholder meetings on December 17, 2013.  The combined company will continue to trade under Parkway’s existing ticker symbol, “PKY”, on the New York Stock Exchange.

James R. Heistand, President and Chief Executive Officer of Parkway, stated, “We are thrilled to have completed this transaction as it represents a major step forward in Parkway’s long-term strategy to be the premier owner and operator of Class A office buildings in the Sunbelt.  We are excited to add these ten high-class buildings to our portfolio, as they will strengthen our position in the Houston market and provide entry to the Austin market with scale.  We are confident that we will be able to capitalize on the strong office fundamentals in these two markets and successfully implement our local market operational strategy to unlock additional value at the assets.”

Parkway also announced that it completed the sale of Thomas Properties’ ownership interest in two office properties located in Philadelphia, Pennsylvania known as Commerce Square to Brandywine Realty Trust (NYSE: BDN) (“Brandywine”), based on a gross property value of $331.8 million.   Additionally, Parkway announced that it completed the sale of Thomas Properties’ Four Points Centre and a contiguous land parcel located in Austin, Texas to Brandywine for a gross sale price of $47.3 million.  Parkway received approximately $93.5 million in net proceeds from the sale of these assets.

James A. Thomas, the former Chairman, President and Chief Executive Officer of Thomas Properties, has joined Parkway’s board of directors and will serve as Chairman of the board.  “I am very pleased with the completion of this transaction which brings together these two entities and results in a strong company with an attractive portfolio in desirable markets,” stated Mr. Thomas.  Parkway’s current executive officers will continue as the executive officers of the combined company.

Parkway Properties, Inc. is a fully integrated, self-administered and self-managed real estate investment trust specializing in the acquisition, ownership and management of quality office properties in higher growth submarkets in the Sunbelt region of the United States. Parkway owns or has an interest in 43 office properties located in eight states with an aggregate of approximately 12.6 million square feet atOctober 1, 2013. Parkway also offers fee-based real estate services which manage and/or lease approximately 11.7 million square feet for third parties as of October 1, 2013.

BofA Merrill Lynch served as exclusive financial advisor to Parkway, and Hogan Lovells US LLP acted as its legal counsel. Morgan Stanley & Co. LLC served as exclusive financial advisor to Thomas Properties, and Skadden, Arps, Slate, Meagher & Flom LLP acted as its legal counsel.

 

Source:  PR Newswire

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