UPDATE 1-New GGP files for $8.14 bln stock, warrant sale

Mon Nov 1, 2010 7:54am EDT

* Selling stockholders to sell 789.6 mln shrs

* Will also offer warrants

Nov 1 (Reuters) - New GGP Inc, to be spun-off from mall operator General Growth Properties (GGP.N), which is expected to emerge from bankruptcy next week, filed with U.S. regulators to offer shares and warrants worth up to $8.14 billion.

In a regulatory filing, the company said selling stockholders will sell 789.6 million shares and issue warrants to purchase up to 120 million shares.

General Growth is set to exit bankruptcy around Nov. 8 with a new board of directors. It will emerge as two companies -- New GGP and Howard Hughes.

New GGP will house 185 retail properties, mostly malls. Howard Hughes will comprise General Growth's master-planned residential community business, as well as development and other non-income producing properties.

Howard Hughes has already filed for an initial sale of stock and warrants in late October.

Investors led by Brookfield Asset Management Inc (BAMa.TO), and hedge funds Fairholme Funds Inc and Pershing Square Capital Management LP, have agreed to buy stock at $10.25 per share, putting in up to $6.8 billion of new capital to fund the new company. The Teacher Retirement System of Texas is investing $500 million. Blackstone Real Estate Advisors has agreed to invest $500 million in exchange for 7.6 percent of both companies, which will be derived from stakes held by Brookfield, Fairholme and Pershing.

After the offering, the company will have 961.3 million outstanding shares and warrants to buy additional shares.

New GGP will list on the New York Stock Exchange under the symbol "GGP" (Reporting by Sweta Singh in Bangalore; Editing by Jarshad Kakkrakandy)

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