The Canada Pension Plan Investment Board is acquiring a 24.5 per cent interest in an office tower and plaza in Houston, Texas for about $185 million.

The properties are part of an office portfolio that comprises 11 office buildings totalling about 4.9 million square feet in office space. The portfolio’s owner, Parkway Inc. will continue to operate the properties and provide management and leasing services.

Read: What should institutional investors expect from the real estate market in 2017?

“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 and head of U.S. real estate investments at CPPIB.

The transaction is expected to close following customary closing conditions.

Read: CPPIB sells stake in Manhattan office building

Copyright © 2020 Transcontinental Media G.P. Originally published on benefitscanada.com

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