Why did Ackman’s Pershing Square exit General Growth Properties?
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.
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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.