ORLANDO, Fla., April 9, 2012 /PRNewswire/ -- Parkway Properties, Inc. (NYSE: PKY) announced today that 12 of the 15 properties included in Parkway's previously announced portfolio sale of non-core assets (the "Non-Core Portfolio") have closed. The 12 assets sold include five assets in Richmond, four assets in Memphis, and three assets in Jackson. The closings occurred in different phases throughout the first quarter of 2012 and generated total net proceeds to Parkway of approximately $88.1 million. The sold properties total 1.5 million square feet and were a combined 79.5% occupied as of January 1, 2012.
The three remaining assets that were part of the Non-Core Portfolio sale that have not yet closed are The Pinnacle at Jackson Place ("The Pinnacle"), Parking at Jackson Place, and 111 Capitol Building, all located in Jackson. The Pinnacle and Parking at Jackson Place are expected to close during the second quarter of 2012, subject to the buyer's successful assumption of the existing mortgage loan and customary closing conditions. The contract to sell 111 Capitol Building has expired without a sale.
Parkway has now completed its exit from Richmond and only has one remaining asset in Memphis, the Morgan Keegan Tower totaling 337,000 square feet located in the Memphis central business district. Once the sale of The Pinnacle and Parking at Jackson Place is complete, Parkway will have two remaining assets in Jackson – City Centre, a 267,000 square foot office property, and 111 Capitol Building, a 187,000 square foot office property, both located in the Jackson central business district. Parkway will continue to pursue a sale of these remaining assets in Jackson and Memphis.
All of the Non-Core Portfolio assets sold to-date were unencumbered with debt at closing, with the exception of River Oaks Place and the UBS Building in Jackson, which were owned in a joint venture in which Parkway had a 20% ownership share. Parkway's share of the debt in that joint venture was $2.4 million. The Pinnacle currently serves as collateral for a $29.5 million mortgage loan.
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 44 office properties located in 10 states with an aggregate of approximately 10.2 million square feet of leasable space at April 1, 2012. Fee-based real estate services are offered through wholly-owned subsidiaries of the Company, which in total manage and/or lease approximately 12.2 million square feet for third-party owners at April 1, 2012.
Parkway Properties, Inc.'s press releases and additional information about the Company are available on the Company's website at www.pky.com.
Forward Looking Statement
Certain statements in this release regarding the timing of certain dispositions and expectations with respect to properties held for sale are forward-looking statements within the meaning of the federal securities laws and as such are based upon the Company's current belief as to the outcome and timing of future events. There can be no assurance that future developments affecting the Company will be those anticipated by the Company. 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 risks and uncertainties associated with the failure to sell properties as and when anticipated; and other risks and uncertainties detailed from time to time in the Company's SEC filings. The Company does not undertake to update forward-looking statements, except as may be required by law.