Canada Pension Plan Investment Board (CPPIB) announced that it has signed an agreement to acquire an interest in Greenway Plaza and Phoenix Tower (collectively, the Greenway Portfolio), an office portfolio in Houston, Texas, from Parkway, Inc. (Parkway) for an equity investment of US$141 million. The transaction values 100% of the property at US$1.045 billion.

CPPIB, Parkway, TH Real Estate and Silverpeak Real Estate Partners (Silverpeak) have agreed to form a joint venture to hold the Greenway Portfolio, with CPPIB and a partnership between TH Real Estate and Silverpeak each owning a 24.5% interest and Parkway retaining a 51% interest. Parkway will continue to operate the Greenway Portfolio, and will provide property management and leasing services for the joint venture.

“The Greenway Portfolio provides CPPIB with immediate scale in the Houston office sector, which we expect to benefit from accelerating job creation and continuing population growth,” said Hilary Spann, Managing Director, Head of U.S. Real Estate Investments, CPPIB. “We look forward to working with Parkway’s team, TH Real Estate and Silverpeak in this joint venture.”

Located in Houston’s Greenway area, the Greenway Portfolio is a 52-acre master-planned, mixed-use complex with 11 office buildings, totalling approximately 4.9 million square feet in office space. Greenway is located near Houston’s Galleria district and affluent residential neighbourhoods with convenient transportation links to the central business district and major health care and education hubs.

Source: CPPIB