Thomas Properties AcquiredOriginally published September 5, 2013 at 1:45 p.m., updated September 5, 2013 at 12:34 p.m.
Real estate investment trust Thomas Properties Group Inc. announced today it has been acquired by Parkway Properties Inc. in all stock transaction valued at $1.2 billion.
The deal, which is schedule to close by the end of the month, is for $294 million in Parkway stock. The Orlando, Fla. company will assume $752 million in Thomas Properties’ debt. The remainder of the value is from outstanding and expected property sales.
As part of the transaction, James Thomas, Thomas Properties founder and chief executive, will become chairman of Parkway’s board.
The downtown Los Angeles property management firm has multiple holdings in Texas, including two buildings in Houston and five in Austin, that were of interest to Parkway as it tries to bolster its presence in the state.
Thomas also has office properties in several other states, including Virginia and Pennsylvania, which have been or are soon to be sold as part of the deal.
“We are big believer in Parkway’s long-term growth strategy of gaining critical mass with high-quality assets in targeted submarkets throughout the Sunbelt,” Thomas said in a statement announcing the deal.
On news of the acquisition, stock for Thomas Properties was up 5.6 percent to $6.02 on the NYSE.