Howard Hughes Corp., the real estate company spun off last year from General Growth Properties Inc., bought an interest in a master-planned community in Texas from a unit of Morgan Stanley for $117.5 million.
Howard Hughes will take full control of the Woodlands development in Houston, the Dallas-based company said in a statement today. The 28,000-acre (11,300-hectare) community has 97,000 residents and 1,372 acres of residential land for sale. It also has 936 acres of unsold land for commercial use.
Morgan Stanley Real Estate Investing has owned a stake in Woodlands since 1997, while Howard Hughes has been an investor since 2004. The project generated $36 million in revenue in the first quarter from the sale of residential and commercial real estate lots, and is projected to sell out in 2022, according to Howard Hughes’s annual report.
The company owns master-planned residential communities and commercial real estate, including Summerlin, a 22,500-acre residential project in Las Vegas, and South Street Seaport, a shopping center in Manhattan.
Howard Hughes rose 94 cents, or 1.5 percent, to $63.23 yesterday in New York Stock Exchange composite trading.