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Parkway Announces Agreements To Purchase Office Towers In Houston, Atlanta And Charlotte

Parkway Announces Agreements To Purchase Office Towers In Houston, Atlanta And
                                  Charlotte

PR Newswire

ORLANDO, Fla., Dec. 3, 2012

ORLANDO, Fla., Dec. 3, 2012 /PRNewswire/ --Parkway Properties, Inc. (NYSE:
PKY) announced today that it has entered into a purchase and sale agreement to
acquire Phoenix Tower, a 626,000 square foot office tower located in the
Greenway Plaza submarket of Houston, Texas; Tower Place 200, a 260,000 square
foot office tower located in the Buckhead submarket of Atlanta, Georgia; and
525 North Tryon, a 406,000 square foot office tower located in the central
business district (CBD) of Charlotte, North Carolina. All three acquisitions
are subject to customary closing conditions and are expected to close by the
end of the fourth quarter of 2012.

(Logo: http://photos.prnewswire.com/prnh/20030513/PARKLOGO )

James R. Heistand, Parkway's President and Chief Executive Officer, stated,
"These three acquisition opportunities fit well within our investment strategy
of acquiring high-quality assets in our targeted submarkets. We believe these
three investments continue our portfolio transformation, as we strive to
become the leading operator of office properties in our Sunbelt markets."

Phoenix Tower

Parkway is under contract to acquire Phoenix Tower for a purchase price of
$124.5 million, or $199 per square foot. Phoenix Tower was built in 1984 and
fully renovated in 2011. It is a LEED® Gold Certified, 26-story, Class A
office tower that sits atop an eight-story parking garage. The building is
currently 84.5% leased with an average in place net rent per square foot of
$14.03. Phoenix Tower is expected to generate a 2013 estimated cash net
operating income yield of approximately 6.0%. Parkway will own 100% of the
asset and intends to place a secured first mortgage on the property shortly
after closing totaling approximately 65% of the purchase price. Closing is
expected to occur by the end of the fourth quarter 2012 and is subject to
customary closing conditions.

Tower Place 200

Parkway is under contract to acquire Tower Place 200 for a purchase price of
$56.0 million, or $216 per square foot. Tower Place 200 was built in 1998 and
is a 13-story, Class A office tower that shares a parking garage with
Parkway's neighboring 3344 Peachtree asset. The building is approximately
81.0% leased with an average in place gross rent per square foot of $26.37.
Tower Place 200 is expected to generate a 2013 estimated cash net operating
income yield of approximately 5.9%. Parkway will own 100% of the asset and
does not plan to place secured financing on the property at this time.
Closing is expected to occur by the end of the fourth quarter 2012 and is
subject to customary closing conditions.

525 North Tryon

Parkway is under contract to acquire 525 North Tryon for a purchase price of
$47.4 million, or $117 per square foot. 525 North Tryon was built in 1998 and
is a 19-story, Class A office tower with an attached parking garage. The
building is currently 69.8% leased with an average in place gross rent per
square foot of $19.61. 525 North Tryon is expected to generate a 2013
estimated cash net operating income yield of approximately 4.7%. Parkway will
own 100% of the asset and does not plan to place secured financing on the
property at this time. Closing is expected to occur by the end of the fourth
quarter 2012 and is subject to customary closing conditions.

Other Investment Activity

On November 15, 2012, Parkway completed the previously announced purchase of
Westshore Corporate Center, a 170,000 square foot office tower located in the
Westshore submarket of Tampa, Florida, for a net purchase price of $22.5
million. Westshore Corporate Center is currently 77.7% leased and is expected
to generate a 2013 estimated cash net operating yield of approximately 8.5%
based on the net purchase price.

About Parkway Properties

Parkway Properties, Inc., a member of the S&P Small Cap 600 Index, is a
self-administered real estate investment trust specializing in the ownership
of quality office properties in higher-growth submarkets in the Sunbelt region
of the United States. Parkway owns or has an interest in 38 office properties
located in nine states with an aggregate of approximately 10.0 million square
feet of leasable space at November 1, 2012. Fee-based real estate services
are offered through wholly owned subsidiaries of the Company, which in total
manage and/or lease approximately 11.6 million square feet for third-party
owners at November 1, 2012.

Forward Looking Statement

Certain statements in this press release that are not in the present or past
tense or that discuss the Company's expectations (including any use of the
words "anticipate," "assume," "believe," "estimate," "expect," "forecast,"
"guidance," "intend," "may," "might," "project", "should" or similar
expressions) are forward-looking statements within the meaning of the federal
securities laws and as such are based upon the Company's current beliefs as to
the outcome and timing of future events. There can be no assurance that actual
future developments affecting the Company will be those anticipated by the
Company. Examples of forward-looking statements include projected net
operating income, cap rates, internal rates of return, future dividend payment
rates, forecasts of FFO accretion, projected capital improvements, expected
sources of financing, expectations as to the timing of closing of
acquisitions, dispositions and other potential transactions and descriptions
relating to these expectations. These forward-looking statements involve
risks and uncertainties (some of which are beyond the control of the Company)
and are subject to change based upon various factors, including but not
limited to the following risks and uncertainties: changes in the real estate
industry and in performance of the financial markets; the demand for and
market acceptance of the Company's properties for rental purposes; the ability
of the Company to enter into new leases or renew leases on favorable terms;
the amount and growth of the Company's expenses; tenant financial difficulties
and general economic conditions, including interest rates, as well as economic
conditions in those areas where the Company owns properties; risks associated
with joint venture partners; risks associated with the ownership and
development of real property; termination of property management contracts;
the bankruptcy or insolvency of companies for which Parkway provides property
management services or the sale of these properties; the outcome of claims and
litigation involving or affecting the Company; the ability to satisfy
conditions necessary to close pending transactions and the ability to
successfully integrate pending transactions; applicable regulatory changes;
and other risks and uncertainties detailed from time to time in the Company's
SEC filings. Should one or more of these risks or uncertainties occur, or
should underlying assumptions prove incorrect, the Company's business,
financial condition, liquidity, cash flows and financial results could differ
materially from those expressed in the Company's forward-looking statements.
Any forward-looking statement speaks only as of the date on which it is made.
New risks and uncertainties arise over time, and it is not possible for us to
predict the occurrence of those matters or the manner in which they may affect
us. The Company does not undertake to update forward-looking statements
except as may be required by law.

Contact:
Thomas E. Blalock
Vice President of Investor Relations
(407) 650-0593

SOURCE Parkway Properties, Inc.

Website: http://www.pky.com