Ackman’s Pershing Square to buy Major Stake in Howard Hughes

Bill Ackman’s investment fund is making another move to acquire more shares of Howard Hughes Holdings.

Pershing Square Capital Management has proposed a $900 million deal to raise its stake in the Houston-based company from 37.6 to 48 percent, the Wall Street Journal reported.

The non-binding offer involves acquiring 10 million newly issued shares at $90 per share, a 46 percent premium over the company’s stock price in early August.

Pershing Square would finance the investment using its own balance sheet cash. Under the terms of the offer, Ackman would become the CEO and Chairman of Howard Hughes, which is known for its master-planned community developments, including The Woodlands and Bridgeland in the Houston area and Summerlin in Las Vegas. He previously served as the company’s chairman from 2010 until his retirement early last year.

Ackman’s $900 million offer is under review by the board.

His vision for the company is to reshape it into a diversified holding company, similar to Berkshire Hathaway, Warren Buffett’s investment vehicle. The goal would be to acquire controlling interests in both private and public companies that meet Pershing Square’s investment criteria.

Pershing Square withdrew its bid from Jan. 13, which sought to purchase 11.8 million shares at $85 each in an attempt to take majority control.

Howard Hughes is now led by Chairman Scot Sellers and CEO David O’Reilly. Sellers previously served as chairman and CEO at Archstone, a multifamily investment firm.

The billionaire hedge fund manager has also been involved in other real estate ventures, including listing his Central Park West duplex for $19.9 million in November.

The two eighth-floor units span 6,000 square feet and feature five bedrooms and seven bathrooms. Ackman purchased the duplex for $22 million in 2017 but is now willing to sell at a loss. The Corcoran Group’s Deborah Kern has the listing.

Ackman owns a glass penthouse on West 77th Street, which he purchased for $22.5 million. He also led a group that bought a $91.5 million penthouse at One57, and he later attempted to flip it for $500 million.

— Andrew Terrell