General Growth Properties (GGP) on Friday unveiled the names of nine professionals who will serve on the board of a company that will be spun off by the bankrupt mall REIT.
The company — a portfolio of real estate assets that includes master planned communities — will be named The Howard Hughes Corp. It will be sold off by GGP after the maill reit emerges from bankruptcy in November.
Hedge fund manager William Ackman will be chairman of the spun off company and he will serve on its board. Ackman is founder and CEO of Pershing Square Capital Management.
“The Howard Hughes name — which reflects the success and vision of one of our country’s greatest entrepreneurs — is a fitting brand for this world-class portfolio of real estate assets,” Ackman said in a press release.
Others on the board of Howard Hughes Corp. include David Arthur, managing partner for real estate investments in North America for Brookfield Asset Management, Adam Flatto, president of The Georgetown Co., Jeff Furber, CEO of AEW Capital Management and Gary Krow, CEO and director of GiftCertificates.com.
The board also includes Allen Model, co-founder of Overseas Strategic Consulting, Scott Sellers, CEO of Archstone, and Steve Shepsman, executive managing director and founder of New World Realty Advisors.
Last month, GGP reached an agreement to settle its dispute with the heirs of Howard Hughes regarding the Summerlin planned community in Las Vegas.
Under the terms of the agreement, GGP will pay $230 million to the Hughes heirs in exchange for a full release and settlement of all claims against GGP and its affiliates. The amount will be paid shortly after GGP’s emergence from bankruptcy; $10 million will be paid in cash and the remaining $220 million may be paid either in cash or in shares of new GGP common stock at the election of the company.
The Summerlin master planned community spans 22,500 acres along the western rim of the Las Vegas Valley. It is home to nearly 100,000 residents.
GGP unveiled its plans for the spinoff off in August. The newly-formed public real estate company will specialize in the development of master planned communities and other strategic real estate development opportunities.
Substantially all of the company’s common stock will be distributed to the holders of GGP’s common stock; GGP will not retain any ownership in the company.