General Growth Properties’ (GGP) position was reduced to 27,624,282 shares last quarter from 35,681,182 shares in 3Q 2013 in Pershing Square’s portfolio. Last week, Pershing Square exited its remaining stake in GGP, one of the firm’s most profitable investments. Real estate investment trust (REIT) General Growth Properties on February 11, 2013, announced it has bought back 27,624,282 of its common shares from affiliates of Pershing Square at $20.12 per share for total consideration of approximately $556 million. GGP said it used its available liquidity to buy back the shares.
Receive e-mail alerts for new research on APD:
Interested in APD?
Don’t miss the next report.
In 2010, Ackman was part of an investor group that rescued GGP from bankruptcy post the financial crisis. In 2011, Ackman told Bloomberg that his $60 million investment had “turned into $1.6 billion.” After a failed move to sell GGP to larger rival Simon Property Group, Ackman sold some of his shares and warrants to another major shareholder Brookfield Asset Management earlier in 2013. In September 2013, Pershing Square sold 25 million shares for $500 million.
According to a report on Bloomberg, Ackman said he sold GGP because the expected returns on the investment after management fees would not satisfy his investors, but that “there’s still meaningful upside in General Growth.”
For more on General Growth Properties and its 4Q 2013 results, read General Growth Properties is one of the largest US mall REITs.