Atlanta-based Cousins Properties on Tuesday said the vast majority of its shareholders and those of merger partner Parkway Properties approved a planned tie-up of the two real estate investment trusts.
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 combination also would result in a future spin-off of a separate public company called Parkway Inc. that would own office properties in the Houston area.
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.
The deal is expected to be final in the fourth quarter of this year. 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.
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