Bill Ackman’s Pershing Square is considering a deal that would delist Howard Hughes Holdings for $3bn, according to regulatory filings. This would represent a significant increase in its investment into the group.
Pershing square holds a stake of approximately 38 percent in the real estate firm. Pershing Square has hired Jefferies as an investment bank to assess the possibility of taking the real estate company private. The filing revealed that the firm may also seek co-investors for a financing deal.
Ackman’s hedge-fund is currently battling a string of painful setbacks. He pulled Pershing Square USA’s initial public offering last week after cutting its fundraising goal from $25bn down to $2bn.
Pershing Square refused to comment. Jefferies didn’t respond to our request for comment. Howard Hughes’ spokesperson said that the company doesn’t comment on individual shareholder actions or intentions and all the details it knows are in the regulatory filing. The company’s shares in New York rose by 6.3% on Wednesday.
Pershing Square is a long-time shareholder in Howard Hughes. Howard Hughes owns land, develops apartment buildings, and builds office buildings across Texas, Nevada and Arizona. The company was a major player in the redevelopment of South Street Seaport, New York.
Ackman, who had been chairman of Howard Hughes since General Growth Properties was spun off from the then-bankrupt shopping center operator in 2010, left the board this spring.
Ackman stated in April that at the time of spin-off, “it was a complex collection of development assets and master planned communities as well as income-producing properties and other assets”. Howard Hughes had announced his departure from the board.
Pershing Square slowly increased its stake and “intends to remain a significant, long-term investor of HHH”, according to a company press release issued in April.
Howard Hughes has since streamlined its operations. Howard Hughes split its entertainment division in July, including the Las Vegas Aviators baseball team, stadium and parts of South Street Seaport. It also owns the rights to the space above Las Vegas Fashion Show Mall, where it intends to build a new casino.
Ackman, in a social media post on the platform X, said: “I decided to withdraw the IPO today when I came up a better transaction.” The company did not provide any additional information on the new possible transaction.
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