By The Home News (contact)

Published Tue, Nov 25, 2008 (11:04 a.m.)

Updated Tue, Nov 25, 2008 (2:47 p.m.)

There's finally a bit of good news for the beleaguered stockholders of General Growth Properties Inc., the Chicago real estate giant that is a big player in the Las Vegas economy.

General Growth earlier this month warned it might have to file for bankruptcy as it struggles to refinance debt.

But its stock price rose 36 percent today on the disclosure that hedge fund manager Pershing Square Capital Management LP has purchased a 20-percent stake in General Growth through share purchases and stock swaps.

General Growth stock closed up 36 cents at $1.36 on the news. On Monday its shares more than doubled to $1 from 41 cents.

After the dramatic decline in its stock price from about $50 in December, the investment by Pershing Square is seen as a rare vote of confidence in the future of the company.

In Las Vegas, General Growth owns regional malls Boulevard and Meadows; and Las Vegas Strip malls Fashion Show, Grand Çanal Shoppes and the Shoppes at the Palazzo.

It also owns The Howard Hughes Corporation, developer of the 22,500-acre Summerlin planned community.