<!-- Swiftype Variables -->

Investing

Canada Pension Plan Investment Board to acquire Parkway REIT

Canadian flag

Canada Pension Plan Investment Board, Toronto, on Friday announced it had agreed to acquire real estate investment trust Parkway for $1.2 billion, or $23.05 a share, pending approval of Parkway shareholders.

Parkway's board of directors unanimously approved the agreement, according to a joint news release from CPPIB and Parkway.

The REIT had $2.12 billion in assets, focusing on Houston's office market, as of March 31, according to Parkway's first-quarter earnings statement. HFF Securities was Parkway's financial adviser on the deal, which is expected to close in the fourth quarter.

CPPIB manages the C$316.7 billion ($238.6 billion) in assets of the Canada Pension Plan, Ottawa. CPPIB had a 23.1% allocation to real assets allocation as of March 31.