The firm is selling the 23.4 million shares it hold in four funds according to GG, which has gained 75 per cent since its bankruptcy by redeveloping properties and focusing on its best-quality malls, Bloomberg said.
GG has 124 regional malls in the US in its portfolio and another 18 in Brazil, covering about 128 million sq ft.
Citigroup is acting as sole underwriter for the secondary offering. GG said it would not receive any proceeds from the share sale.
Blackstone closed the largest real estate private equity fund in history last October after collecting $13.3bn of commitments.
US public pension plans were the largest category of investor in the fund, according to Blackstone, which took just 13 months to complete the fundraise.
Other LPs included China’s currency-reserve manager SAFE, which made a $500m commitment from the country’s $3.2tn foreign exchange reserve.
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