Texas Teacher Retirement System, Austin, will invest $500 million in General Growth Properties Inc., in exchange for equity in reorganized GGP stock at $10.25 per share, confirmed GGP spokesman Jim Graham.
GGP also has signed initial investment agreements with Brookfield Asset Management, Fairholme Funds and Pershing Square Capital Management, which will provide funding for the real estate investment trust to emerge from Chapter 11 bankruptcy. The company filed for Chapter 11 bankruptcy on April 16, 2009, Mr. Graham said.
The investment agreements include a backstop for $1.5 billion of debt and $500 million of equity.
“Although we previously obtained sufficient capital commitments to enable us to emerge from Chapter 11, this transaction expands and diversifies our ownership base on attractive terms and preserves our ability to continue to seek more favorable equity investments,” Adam Metz, CEO of GGP, said in the news release. “We continue to make excellent progress with our restructuring plan and are well on our way to exiting Chapter 11 by October of this year.”
Howard Goldman, spokesman for the $96.7 billion retirement system, could not be reached for comment.