General Growth: Blackstone to invest $500 million

LOS ANGELES -- General Growth Properties Inc., which owns major shopping malls in Las Vegas, says asset manager Blackstone Group has agreed to invest about $500 million for shares in the shopping mall operator once it emerges from Chapter 11 bankruptcy protection.

General Growth disclosed the agreement in a regulatory filing on Wednesday detailing the company's latest plan to exit bankruptcy.

An investor group led by Canadian property manager Brookfield Asset Management Inc. has agreed to provide up to $8.5 billion in capital to finance the proposed restructuring plan.

It calls for the Chicago-based company to emerge from bankruptcy protection this fall as two separate companies.

The Blackstone Group would receive shares in both companies and an allocation of stock warrants.

In Las Vegas, General Growth owns the Boulevard and Meadows malls off the Strip. Along the resort corridor, the company owns the Fashion Show mall, the Grand Canal Shoppes at The Venetian and the Shoppes at Palazzo. General Growth also owns The Howard Hughes Corp., which is developing Summerlin. A major regional mall the company was building at Summerlin Centre is on indefinite hiatus.