JACKSON, Miss., Feb. 15 /PRNewswire-FirstCall/ -- Parkway Properties, Inc. announced today the signing of a Contribution/Purchase Agreement (the "Agreement") with Estein & Associates USA, Ltd. ("ESA") to form a limited partnership to own the 233 North Michigan Building in Chicago, Illinois. ESA will be a 70% partner in the partnership, while Parkway will retain a 30% interest and provide management, leasing and construction management services to the partnership. The Agreement values the building at $256 million and is subject to completion of a customary 45-day due diligence period, at which time earnest money will be at risk. Based on the terms of the Agreement, closing is expected to occur within the second quarter. The closing is subject to the satisfaction of conditions, including acceptable financing being obtained that would close simultaneously with the asset transfer. There can be no assurances that conditions of the Agreement will be satisfied, or if satisfied, that such closing will occur.
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The Company expects to update earnings guidance for 2006 to reflect the impact of a change in ownership of the building and the use of proceeds when the material conditions of closing have been met.
Steven G. Rogers, President and Chief Executive Officer, stated "We are pleased to reach agreement with Estein & Associates and have the opportunity to work with this best partner at 233 North Michigan. If completed, this partnership will help accomplish the ambitious goals set out for 2006 and the GEAR UP Plan of Asset Recycling and furthering our relationships with best partners through Equity Opportunities. We look forward to updating the market as the due diligence period progresses and a closing becomes certain."
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, acquisition, ownership, management, and leasing of office properties. The Company is geographically focused on the Southeastern and Southwestern United States and Chicago. Parkway owns or has an interest in 66 office properties located in 11 states with an aggregate of approximately 12,224,000 square feet of leasable space as of February 15, 2006. The Company also offers fee-based real estate services through its wholly owned subsidiary, Parkway Realty Services, to its owned properties and to its third party and minority interest properties.
Parkway Properties, Inc.'s press releases and additional information about the Company are available on the World Wide Web at http://www.pky.com/.
Certain statements in this press release that discuss the Company's expectations 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. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, actual results could differ materially from those set forth in the forward-looking statements. The Company cautions investors and potential investors not to place undue reliance on such statements. The Company undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect future events or circumstances or to reflect the occurrence of unanticipated events.
Contact: Steven G. Rogers
President & Chief Executive Officer
William R. Flatt
Chief Financial Officer
(601) 948-4091
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