CPPIB Acquires Houston Office REIT

Nine, Eleven and Twelve Greenway Plaza are part of the Greenway Portfolio.

TORONTO and HOUSTON—The Canada Pension Plan Investment Board said Friday it would acquire Houston office REIT Parkway Inc. for $1.2 billion, or $23.05 per share. The announcement comes two days after CPPIB and Encino Energy announced a venture to acquire US oil and gas assets, thereby broadening CPPIB’s reach into the energy sector, a key source of office-using employment in Houston.

“Parkway fits well with CPPIB’s long-term real estate strategy to hold stable, high-quality assets in large US markets,” says Hilary Spann, managing director and head of US real estate investments at CPPIB. “Through this investment, CPPIB gains additional scale in Houston.”