Parkway Announces Agreement to Combine with Eola Capital and Purchase Six Office Properties

Parkway Properties, Inc. PKY announced today that it has entered into definitive agreements with privately-owned Eola Capital LLC and certain of its affiliates pursuant to which Eola will contribute its property management business to Parkway and Parkway will acquire six office properties currently owned and operated by Eola and its affiliates on behalf of Parkway Properties Office Fund II, LP, two of which Fund II has already purchased. The combination is valued at approximately $462 million, including costs, and Parkway expects the combination on a stand-alone basis to be $0.16 to $0.22 per share accretive to funds from operations based on a full-year run rate. The combination is expected to close during the second quarter of 2011.