TORONTO-Brookfield Asset Management Inc., based here, is increasing its stake in General Growth Properties Inc. from 27% to 38%, with a $1.7 billion investment. The company is taking over Providence, RI-basedFairholme Fund’s entire common share holding in GGP, though Fairholme still has warrants to acquire more shares in the mall REIT.

Brookfield will acquire 113.3 million GGP shares from Fairholme, in return for 27.5 million Class A shares valued at $907 million, and $804 million in cash. After the transaction, Fairholme will own a 4.5% equity interest in Brookfield, according to a Brookfield statement.

"We are pleased to have this opportunity to substantially increase our ownership in General Growth's market dominant portfolio of premier shopping malls at an attractive valuation," said Bruce Flatt, Brookfield CEO. His firm was joined by Fairholme, Pershing Square Capital Management, Blackstone and the Teacher Retirement System of Texas in investing $6.8 billion in equity commitments to bail out GGP from bankruptcy. The Chicago-based mall REIT emerged from bankruptcy in November.

Fairholm had to follow restrictions on its sale of shares to Brookfield, as Brookfield is limited to only a 45% ownership stake in GGP per the restructuring agreement. The new GGP owns and manages more than 183 malls in 43 states.