UPDATE 3-General Growth eyes dividend; Howard Hughes trades

* $0.10/shr quarterly dividend expected starting in Q1

* Maryland shopping center to be sold for $90.1 mln

* General Growth shares rise, Howard Hughes shares fall
(New throughout, adds datelines)

NEW YORK/BANGALORE, Nov 10 (BestGrowthStock) – General Growth
Properties Inc (GGP.N: ) plans to resume paying dividends early
next year, after the second-largest U.S. mall operator emerged
from bankruptcy and spun off a new company, Howard Hughes Corp
(HHC.N: ).

Citing a higher-than-expected cash stake, General Growth
also said it expects to retire $570 million of obligations by
paying cash, avoiding the potential issuance of more than 50
million common shares.

Shares of General Growth rose as much as 5.4 percent in
morning trading on Wednesday, a day after the company exited
bankruptcy. General Growth reorganized into a new company, and
shareholders of the old General Growth received common stock in
the new company and in Howard Hughes. Shares of the new General
Growth and Howard Hughes began trading on Wednesday.

General Growth expects to pay a 10 cent-per-share quarterly
dividend beginning in the first quarter of 2011.

It also expects in the first quarter to pay a one-time
dividend, 90 percent in shares and 10 percent in cash, to keep
its real estate investment trust status.

The $570 million of payments include $220 million owed to
heirs of Howard Hughes, the billionaire eccentric who died in
1976, to settle a dispute over a Las Vegas property.

They also include $350 million to repay a note owed to the
hedge fund Pershing Square Capital Management LP.

“We are fortunate the cash position in General Growth
exceeds that which was expected several months ago,” General
Growth Chairman Bruce Flatt said in a statement.

Separately, General Growth agreed to sell the Gateway
Overlook Shopping Center in Columbia, Maryland for $90.1
million, as part of its plan to shed unwanted assets. It did
not identify the buyer.

General Growth operates roughly 183 malls in 43 U.S.
states, including Faneuil Hall Marketplace in Boston,
Harborplace in Baltimore and Water Tower Place in Chicago.

It filed for bankruptcy protection in April 2009 after
being unable to refinance billions of dollars of debt.

General Growth restructured $15 billion of debt and
obtained $6.8 billion of capital from investors including
Pershing Square, Canada’s Brookfield Asset Management Inc
(BAMa.TO: ), Fairholme Funds Inc and the Teacher Retirement
System of Texas.

Howard Hughes assets include planned residential
communities and properties such as the South Street Seaport in
Manhattan. Shareholders of General Growth prior to the spinoff
received new common stock in both companies.

In morning trading, General Growth shares were up 44 cents,
or 3.1 percent, at $14.44, after earlier rising to $14.76. The
old General Growth stock had closed at $17.39 on Tuesday.

Howard Hughes shares fell $1.00, or 2.7 percent, to $35.50
on Wednesday morning.

(Reporting by Jonathan Stempel in New York and Sweta Singh
in Bangalore; Editing by Gopakumar Warrier, Dave Zimmerman)

UPDATE 3-General Growth eyes dividend; Howard Hughes trades