By  on July 13, 2010

General Growth Properties Inc. expects to emerge from Chapter 11 bankruptcy court protection by October and has obtained additional financing through an investment from The Teacher Retirement System of Texas.

The real estate investment trust said Monday that the pension fund will invest $500 million in exchange for equity in the reorganized GGP at $10.25 a share. The agreement to invest is subject to Manhattan bankruptcy court approval.

GGP, which filed a voluntary petition for Chapter 11 in Manhattan bankruptcy court in April 2009, already has investment agreements with Brookfield Asset Management, Fairholme Funds and Pershing Square Capital Management that provide a backstop provision for $1.5 billion of debt and $500 million of equity required for emergence. GGP, meanwhile, has continued to explore alternative financing options.

“Although we previously obtained sufficient capital commitments to enable us to emerge from Chapter 11, this transaction expands and diversifies our ownership base on attractive terms and preserves our ability to continue to seek more favorable equity investments,” said Adam Metz, chief executive officer of GGP.

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