Bill Ackman’s Pershing Square To Invest $900M In Howard Hughes Holdings

Ackman stated that Howard Hughes has built substantial value for shareholders in recent years, but this value has largely gone unrecognized due to the high cost of capital that the market assigns to the company.

Bill Ackman’s Pershing Square is set to invest $900 million in Howard Hughes Holdings Inc. (HHH) to raise its stake in the real estate company to 46.9%. HHH shares surged over 7% in Monday’s pre-market following the announcement.

Pershing Square will acquire nine million newly issued shares of HHH. The companies said that the investment will enable HHH to acquire controlling stakes in high-quality, durable growth public and private operating firms while continuing to invest in and grow its core real estate development and Master Planned Communities business.

Pershing Square will pay $100 per share to acquire its stake, representing a 48% premium to HHH’s closing share price on Friday.

Ackman’s company said it “has generally agreed to limit its voting power to 40% and its beneficial ownership to 47%.”

While Ackman has been named the Executive Chairman of the HHH Board of Directors, Ryan Israel, Pershing Square’s Chief Investment Officer, will become HHH’s Chief Investment Officer. Meanwhile, the HHH leadership team, led by CEO David O’Reilly, will remain unchanged with expanded roles and responsibilities.

Ackman stated that HHH 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.

“We believe that HHH 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,” he said.

The two companies have been busy pitching and rejecting potential deals over the last few months. In January, Ackman’s firm had reportedly pitched a deal to merge a newly formed subsidiary with Howard Hughes.

The offer was revised a month later after Pershing Square agreed to acquire 10 million freshly issued HHH shares for $90 apiece. However, Howard Hughes later said the deal wasn’t acceptable.

HHH shares dipped 11% in 2025 but have been up nearly 7% in the past 12 months.

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