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Atlanta-based real estate investment trust Cousins Properties said Tuesday it plans to complete its merger with rival Parkway Properties early next month.
In a news release, Cousins said the deal should be completed Oct. 6, with the planned spin-off of the combined companies’ Houston properties into a new firm called Parkway happening the same day. The distribution date of the spin-off is expected to be on Oct. 7.
Cousins and Parkway shareholders approved the merger last month. In April, Cousins announced plans to acquire rival Parkway in an estimated $2 billion deal that will expand Cousins' reach in Atlanta and across the Sun Belt.
The Houston office market has struggled amid a prolonged oil price slump. Though Cousins’ portfolio in Houston has performed relatively well, the deal is seen as a way to help free up the combined company’s stock price from the drag of the Houston market.
Cousins said earlier this year it will operate 41 properties totaling nearly 16 million square feet nationwide. In Buckhead, Cousins will add trophy towers such as Buckhead Plaza I and II, 3344 Peachtree, Capital City Plaza and the Forum complex.
Atlanta, which has seen office vacancy tighten and rents rise of late to record highs, will make up about half of Cousins portfolio after the sale.
