Pershing Square Sells General Growth Properties Stake to Company ~ market folly

Tuesday, February 11, 2014

Pershing Square Sells General Growth Properties Stake to Company

Bill Ackman's hedge fund Pershing Square Capital Management has finally sold the rest of its longstanding position in General Growth Properties (GGP). 

The company has announced that it acquired the shares from Pershing for around $556 million (around 27.6 million shares at a price of $20.12).

As detailed in our Hedge Fund Wisdom newsletter last year, Pershing Square had already sold almost half of its GGP stake in the third quarter.  And now the fund is completely out of the position as they've also sold their warrants in the company to Brookfield Asset Management, the company's largest shareholder.

This has been one of Ackman's most successful investments ever, as he purchased shares below $1 a share.

Per Google Finance, General Growth Properties is "a real estate investment trust (REIT). The Company owns or with joint venture partners 144 regional malls (126 domestic and 18 in Brazil) consists of approximately 135 million square feet. The Company is engaged in ownership, operation, management and selective re-development of its Consolidated Properties and Unconsolidated Properties, which are primarily regional malls."

For more on Pershing, we've also highlighted that they recently trimmed their Beam position and have disclosed a Platform Specialty Products stake.

blog comments powered by Disqus