Pershing Square, led by Bill Ackman, has committed $900 million to Howard Hughes Holdings (HHH) in a transformative deal that will see the real estate firm evolve into a diversified holding company. The investment includes the purchase of nine million newly issued HHH shares at $100 each—a 48% premium over the previous closing price—bringing Pershing Square’s stake to 46.9%.

Under the new structure, HHH will expand beyond real estate, targeting controlling interests in high-quality public and private companies with long-term growth potential. Ackman has been appointed Executive Chairman of HHH, with Pershing Square CIO Ryan Israel taking on the newly created role of HHH Chief Investment Officer. CEO David O’Reilly and the existing leadership team will remain in place.

Pershing Square will provide strategic support across investment, corporate development, and capital markets. The new structure aims to enhance HHH’s credit profile and financial flexibility, while maintaining its core focus on master planned communities through The Howard Hughes Corporation.

In return for its advisory role, Pershing Square will receive a base fee and a performance-based management fee, but no equity or incentive compensation. The deal was approved unanimously by a special committee of independent directors and is being hailed as a catalyst for long-term value creation.

The announcement comes as HHH continues to develop major communities in markets like Houston, Las Vegas, and Honolulu, with its real estate operations serving as a stable foundation for future diversification.