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Canada Pension Plan Investment Board to acquire Parkway REIT

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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.