Howard Hughes (HHH) will receive a $900 million investment from Pershing Square unit, Pershing Square Capital Management, the companies said Monday.

Under the terms of the deal, Howard Hughes issued Pershing 9 million newly issued shares, the companies said. Pershing Square now owns 46.9% of Howard Hughes shares but has agreed to limit its voting power to 40%, the companies said.

Howard Hughes will also pay Pershing Square a quarterly base fee of $3.75 million, as well as a quarterly management fee equal to 0.375% of the increase in equity market capitalization above a reference market cap, the companies said.

The investment will allow Howard Hughes to become a diversified holding company by "acquiring controlling stakes in high-quality, durable growth public and private operating companies," the companies said.

Pershing Square's chief executive officer Bill Ackman has been named the executive chairman of the Howard Hughes board while Ryan Israel, Pershing Square's chief investment officer, will take on the same role at Howard Hughes, the companies said.