An offer from hedge fund manager Bill Ackman to increase his shareholding in American property trust Howard Hughes has vindicated its Australian co-investors, who agree with the Wall Street billionaire’s conviction that the shares are too cheap.

The New York-traded Howard Hughes Corporation develops master planned communities in six US states, including Texas, Nevada, and New York. But the US Federal Reserve’s aggressive monetary policy stance has dimmed investor interest in rate-sensitive sectors such as housing.