Howard Hughes Holdings plans to spin off Seaport Entertainment, led by Anton D. Nikodemus, with an impressive portfolio including Lower Manhattan's Seaport and a stake in Jean-Georges Restaurants.
In the midst of speculations surrounding Bill Ackman's interest in X (formerly known as Twitter), a lesser-known investment by Pershing Square Management might just steal the spotlight.
On Thursday, Howard Hughes Holdings (ticker: HHH), a renowned real estate developer, announced its plan to spin off a new division called Seaport Entertainment by the end of 2024. This new unit boasts an impressive portfolio that includes Lower Manhattan's Seaport, ownership of the Triple-A minor league baseball team Las Vegas Aviators, a stake in Jean-Georges Restaurants, and an 80% interest in the air rights above the Fashion Show Mall, intended to be utilized in the creation of a dazzling new Vegas casino.
To oversee this ambitious venture, Anton D. Nikodemus, a former executive of MGM Resorts International (MGM), has been appointed as the head of the unit. Ackman, who serves as Howard Hughes' chairman, expressed his confidence in Nikodemus, stating, "Anton's experience, record, and superb leadership skills will facilitate the creation, management, and eventual spinoff of Seaport Entertainment, positioning it and Howard Hughes for even greater success."
Don Bilson, the head of event-driven research at Gordon Haskett, appeared unsurprised by this development. In a note written on Thursday, Bilson remarked, "Ackman is spinning while he's sparking," implying that this strategic move aligns with Ackman's investment style.
Interestingly, this announcement comes shortly after Ackman revealed his inclination towards taking X public through his special-purpose acquisition-rights company (SPARC). It is worth noting that the SPARC structure differs slightly from the more conventional special-purpose acquisition company (SPAC) and was recently approved by the Securities Exchange Commission.
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