Bill Ackman’s shop is increasing its stake in the real estate company

Pershing Square Capital Management has increased its stake in Howard Hughes Corp., according to an S-4 filing with the SEC. Activist hedge fund manager Bill Ackman and his firm announced the increase on Wednesday. Pershing Square now owns 6.4 million shares or 14.8% of the company. The breakdown of that stake includes including 2.2 million shares of common stock and 4.2 million underlying forward purchase contracts.

Pershing Square Capital and Changes Ahead

Bill Ackman serves as chairman of the board at the company. Ackman has long argued that the company is undervalued. Shares are up on the year, but still well below the all-time high price of $160 in 2014. Shares had rallied in June 2019, on news that it was exploring a potential sale.

The company’s assets include New York City’s South Street Seaport, prime beachfront property in Hawaii, and the new NFL stadium in Las Vegas. Earlier this week, it celebrated the topping out of the Tin Building in the Seaport District at Pier 17.

Some have speculated that several private equity firms could consider a deal for the company. The New York Post said earlier this summer that Blackstone Group and Brookfield Property Partners profiled as potential suitors.

Howard Hughes emerged from a spinoff from General Growth Properties in November 2010 – thanks in part to pressure from Bill Ackman.

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