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Morgan Stanley takes stake in General Growth
8:33 PM ET 12/2/08 | Reuters

NEW YORK, Dec 2 (Reuters) - Morgan Stanley (MS) has taken a 5.1 percent stake in U.S. mall operator General Growth Properties Inc (GGP), which is struggling to pay off $1.035 billion in debt due by the end of the year.

The stake, which amounts to 13,628,093 shares, was reported in a filing with the Securities and Exchange Commission on Tuesday. It also comes a day after a beneficial holder of a $58 million note agreed to extend a Dec. 1 deadline to Dec. 11.

Last week, the company also received a two-week reprieve on $900 million of loans related to two Las Vega shopping centers, Fashion Show mall and Shoppes at the Palazzo. Those loans faced a Nov. 28 maturity date. The company has put both properties up for sale, along with another Las Vegas mall, but has yet to reach a deal.

Last month, hedge fund manager William Ackman's Pershing Square Capital Management took a 7.5 percent stake, or 20,080,690 shares, in the Chicago-based mall operator.