Billionaire Bill Ackman’s Pershing Square Capital Management will invest $900 million in Howard Hughes Holdings, turning the master-plan developer into a holding company akin to Berkshire Hathaway.
While Ackman said the deal will diversify the company’s holdings in “high-quality, durable-growth public and private operating companies,” Howard Hughes will still develop its master-planned communities.
“We remain steadfast in our commitment to creating exceptional communities, pursuing innovative development opportunities, and acting nimbly to meet market demand and deliver sustainable growth,” Howard Hughes CEO David O’Reilly said.
The company builds in Arizona, Hawaii, Maryland, Nevada, and Texas. Its portfolio isn’t limited to single-family homes—it also builds and develops multifamily properties, retail spaces, and offices.
- Pershing Square will acquire 9 million newly issued shares and will see its ownership stake in Howard Hughes boosted to 47%.
- Ackman will become chairman of the company’s board, and Pershing Square chief investment officer Ryan Israel will become Howard Hughes’ chief investment officer.
“Howard Hughes has built substantial value for shareholders in recent years that has largely gone unrecognized due to the high cost of capital that the market assigns to the company in light of its pure-play exposure to real estate development and community creation,” Ackman said. “We believe Howard Hughes is a superb platform to build a faster-growing, high-returning holding company that will acquire control of companies that meet Pershing Square’s criteria for business quality and durable growth.”
