AUSTIN, TX-The Teacher Retirement System of Texas has agreed to invest $500 million in General Growth Properties Inc.

The agreement, which says the Texas-based pension fund will receive equity in reorganized GGP at $10.25 per share, is subject to Bankruptcy Court approval. The TRS investment will be in the equity of reorganized GGP only and will not include any interest in the newly formed company to be spun-off to GGP shareholders upon emergence.

Currently, the Chicago-based mall owner and operator plans to emerge from Chapter 11 in October. It has investment agreements with Brookfield Asset Management, Fairholme Funds and Pershing Square Capital Management that provide the capital it needs to emerge from Chapter 11. The investments include a backstop provision for $1.5 billion of debt and $500 million of equity required for emergence.