Reuters: Private Equity: UPDATE 1-Parkway buys building to lease back to BofA

Reuters: Private Equity Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

UPDATE 1-Parkway buys building to lease back to BofA May 3rd 2012, 21:36 Thu May 3, 2012 5:36pm EDT May 3 (Reuters) - Private equity firm TPG Capital Management LP has agreed to take a 43 percent stake in Parkway Properties Inc, which will use the cash infusion to buy the Hearst Tower in Charlotte, North Carolina, where Bank of America Corp has agreed to a new 10-year lease. The Florida-based real estate investment trust said that TPG's $200 million equity stake in the company will enable it to take advantage of opportunities to buy more properties at good prices. "This investment in Parkway by TPG allows us to take advantage of these prospects," Jim Heistand, Parkway's president and chief executive, said in a statement on Thursday. As an example of this, Parkway will use the cash infusion from TPG to acquire the 972,000 square-foot Hearst Tower for $250 million, or $257 per square foot. The building is 94 percent leased, with no meaningful leases expiring until 2017. Along with the purchase, Bank of America has agreed to a new lease for 322,000 square feet at the bottom of the building. Parkway will initially use the cash for the building, but then expects to replace some of that investment with a mortgage.

You are receiving this email because you subscribed to this feed at blogtrottr.com. If you no longer wish to receive these emails, you can unsubscribe from this feed, or manage all your subscriptions