Friday, Oct. 8, 2010 | 8:52 a.m.
- General Growth to pay Howard Hughes heirs; Summerlin’s value tumbles (9-20-2009)
- General Growth challenging Howard Hughes heirs over Summerlin payments (6-30-2010)
- Hughes heirs object to proposal for separate Summerlin company (4-16-2010)
- General Growth plan would spin off Summerlin into separate company (2-24-2010)
- Judge rejects appeal of Howard Hughes’ heirs for control of Summerlin land (2-17-2010)
- Developer General Growth moving subsidiaries out of bankruptcy protection (11-25-2009)
- Developer’s bankruptcy reorganization may affect area shopping malls, gas pipeline (7-17-2009)
- Howard Hughes’ heirs fight for control over Summerlin property (7-17-2009)
Shopping mall and real estate giant General Growth Properties Inc. of Chicago today said the nationwide real estate development business to be spun out of its bankruptcy will have a name familiar to Southern Nevadans: The Howard Hughes Corporation.
General Growth, which filed for bankruptcy last year, is best known as a shopping mall owner and has five operating malls and one unfinished mall in Las Vegas: Fashion Show, Shoppes at the Palazzo, the Grand Canal Shoppes at the Venetian, Boulevard, Meadows and (unfinished) Shops at Summerlin Centre.
General Growth also develops planned communities around the country including Summerlin in western Las Vegas, which has 22,500 acres and about 100,000 residents living in about 40,000 residences.
Its other residential operations to be spun off from the bankruptcy are in Columbia, Md.; Houston and Natick, Mass., in the Boston area.
The Howard Hughes Corporation is the name General Growth already uses as the parent of its Summerlin holdings. The name has its beginnings in the 1950s, when the billionaire Hughes acquired 25,000 acres of desert land in western Las Vegas that eventually became Summerlin -- named for his paternal grandmother.
After Hughes' death in 1976, a company owned by his heirs, Howard Hughes Corp., developed the land. In 1996, they sold Howard Hughes Corp. and its land holdings, including the Summerlin acreage, to Rouse Co. General Growth acquired Rouse in 2004.
Besides the Summerlin holdings, the Hughes name is prominent around Las Vegas because of developments that were sold off to investors over the years including the 115-acre Hughes Center office park at Flamingo and Paradise roads east of the Las Vegas Strip.
There was no mention in today's announcement on whether a decision had been made on where the new The Howard Hughes Corporation would be based and if any corporate jobs would be moving around as part of the spinoff. A spokesman said there was no immediate information to disclose on those issues.
Also today, General Growth named the directors to the new The Howard Hughes Corporation board.
The company intends to name William A. Ackman chairman when the spinoff is completed next month. Ackman is one of the investors taking General Growth out of bankruptcy.
"I am extremely pleased that we have assembled such an experienced, talented and dynamic group of individuals to serve as directors of The Howard Hughes Corporation," Ackman said in a statement. "I also believe 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. We look forward to working to create long-term value for our shareholders."
These individuals will be members of The Howard Hughes Corporation Board of Directors. One seat on the board will be reserved for the company's CEO, who is expected to be announced after the spin-off is completed.
Ackman -- Founder and Chief Executive Officer of Pershing Square Capital Management, L.P. and a director of General Growth Properties, Inc. from June 2009 to March 2010.
David Arthur -- Managing Partner, Real Estate Investments -- North America, for Brookfield Asset Management
Adam Flatto - President, The Georgetown Company, a privately held real estate investment and development company based in New York City
Jeff Furber -- Chief Executive Officer of AEW Capital Management, L.P., which provides real estate investment management services to investors worldwide
Gary Krow -- President, CEO and a director of GiftCertificates.com, a leading eCommerce provider of B2B incentive management solutions. Formerly, President of Comdata Corporation, a subsidiary of Ceridian Corporation.
Allen Model -- Co-Founder, Treasurer and Managing Director of Overseas Strategic Consulting, Ltd., an international consulting firm that provides public information services to clients worldwide
Scot Sellers -- Chief Executive Officer of Archstone, one of the world's largest apartment companies, and former Chairman of the National Association of Real Estate Investment Trusts (NAREIT)
Steve Shepsman -- Executive Managing Director and Founder of New World Realty Advisors, a real estate advisory firm with expertise in real estate restructuring, development and finance, and Chair of the Official Committee of Equity Holders in the Chapter 11 proceedings of General Growth Properties, Inc.