JACKSON, Miss., Sept. 5 /PRNewswire-FirstCall/ -- Parkway Properties,
Inc. (NYSE: PKY) today announced the closing of the fee simple sale of the
Capitol Center office property, located in Columbia, South Carolina.
Capitol Center is a 460,000 square foot property that was 97.5% occupied as
of September 1, 2008. The gross sales price was $47.5 million and
represents a capitalization rate of approximately 9.5% on twelve months
projected cash net operating income from the date of closing. Parkway
received net cash proceeds from the sale of approximately $45.8 million,
which were used to prepay the $18.1 million first mortgage plus related
mortgage prepayment expenses and reduce amounts outstanding under the
Company's line of credit. The Company will recognize a gain on the sale of
approximately $11.7 million and expenses related to the prepayment of the
mortgage of approximately $2.2 million in the third quarter of 2008.
(Logo: http://www.newscom.com/cgi-bin/prnh/20030513/PARKLOGO )
Steven G. Rogers, President and Chief Executive Officer stated, "With
this sale, we have completed the sale of three assets announced in May of
2008, with total gross proceeds of $86.3 million. These sales resulted in a
net pay down in the Company's line of credit of $62.6 million, and we will
recognize a total gain on these sales of $22.6 million in the third quarter
of 2008."
Parkway Properties, Inc., a member of the S&P Small Cap 600 Index, is a
selfadministered real estate investment trust specializing in the
operation, leasing, acquisition, and ownership 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 13.3
million square feet of leasable space as of September 5, 2008. Included in
the portfolio are 21 properties totaling 3.8 million square feet that are
owned jointly with other investors, representing 28.8% of the portfolio.
Under the Company's GEAR UP Plan, which started January 1, 2006 and ends
December 31, 2008, it is the Company's goal to transform its strategy from
being an owner-operator to being an operator- owner. The strategy
highlights the Company's strength in providing excellent service in the
operation of office properties in addition to its direct ownership of real
estate assets. Feebased real estate services are offered through the
Company's wholly-owned subsidiary, Parkway Realty Services, which also
manages and/or leases approximately 1.8 million square feet for third party
owners as of September 5, 2008.
Parkway Properties, Inc.'s press releases and additional information
about the Company are available on the World Wide Web at http://www.pky.com.
CONTACT: STEVEN G. ROGERS
PRESIDENT & CHIEF EXECUTIVE OFFICER
J. MITCHELL COLLINS
CHIEF FINANCIAL OFFICER
(601) 948-4091
SOURCE Parkway Properties, Inc.
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Related links:
http://www.pky.com/
Photo Notes:
NewsCom: http://www.newscom.com/cgi-bin/prnh/20030513/PARKLOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com
http://www.prnewswire.com/comp/103115.html /
CONTACT:
Steven G. Rogers, President & Chief Executive
Officer, or J. Mitchell Collins, Chief Financial Officer, both of
Parkway Properties, Inc., +1-601-948-4091
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