Teravalis Project Accelerates With $900M Investment From Pershing Square

The West Valley is poised for transformation as Howard Hughes Holdings Inc. (NYSE: HHH) receives a significant financial infusion that will fast-track the launch of Teravalis, a 37,000-acre master-planned community in Buckeye, Arizona. A $900 million investment from Pershing Square Capital Management LP, led by Bill Ackman, will help propel what is being described as one of the largest planned communities in the country.

A Landmark Investment for a Landmark Project

Pershing Square's capital will be used to acquire 9 million newly issued shares of Howard Hughes Holdings, providing a key financial foundation for its growth strategy. CEO David O'Reilly called the timing ideal, as the community nears its grand opening this fall, beginning with Floreo, its first village. Floreo alone will include 8,500 homes, with seven homebuilders already starting model home construction (Phoenix Business Journal, 2025).

Originally purchased for $600 million in 2021, Teravalis will ultimately include 100,000 homes, accommodate 300,000 residents, and offer up to 55 million square feet of commercial space, making it the largest development in Howard Hughes’ portfolio (Phoenix Business Journal, 2025).

Bill Ackman's Vision for Diversification

This investment also marks a turning point in the company's broader strategic direction. Bill Ackman, now serving as executive chairman of HHH, envisions transforming the firm from a real estate developer into a diversified holding company, similar in spirit to Berkshire Hathaway. Ackman has a long history with the company, having spun Howard Hughes out of General Growth Properties nearly 15 years ago (Phoenix Business Journal, 2025).

" Any time you can raise $900 million and bring in expertise, it's a benefit to every asset the company owns," O’Reilly said. "With this capital, we are able to invest even further in Teravalis and it becomes even more profitable" (Phoenix Business Journal, 2025).

Facing Arizona’s Water Challenges Head-On

Despite concerns over water supply in Buckeye — a city not designated as a water provider — O’Reilly remains confident. The Floreo village already has certificates of assured water supply, though other areas of the project do not yet. However, Howard Hughes’ experience developing the Summerlin community in Las Vegas, where water usage per capita is significantly lower than Phoenix, positions the company well to address these challenges sustainably (Phoenix Business Journal, 2025).

"In Summerlin, we're using a little bit less than 90 gallons per capita today, which is about 40% less of what Phoenix uses today," O'Reilly noted. "If we're able to apply those same smart things to the Phoenix Valley, there's enough water for everyone."

Strong Financial Outlook

Howard Hughes reported a net income of $10.84 million on $199.32 million in revenue for Q1 2025 — a sharp rebound from a $21 million loss during the same quarter in 2024. These gains signal strong momentum and reaffirm confidence in the Teravalis investment as a strategic growth driver (Phoenix Business Journal, 2025).

A Desert City of the Future

Ultimately, Teravalis is envisioned as more than just a place to live. O’Reilly describes it as a complete ecosystem: “a community for people to live, work, play, learn, and discover.” With cutting-edge sustainability practices, major financial backing, and lessons learned from decades of successful developments, Teravalis is positioned to become a model for master-planned living in the American Southwest.

Source (APA Format):
Velzer, R. (2025, May 9). Teravalis development to accelerate as Howard Hughes secures major funding boost. Phoenix Business Journal.