Morgan Stanley Real Estate Investing (MSREI) has raised $1.7bn (€1.56bn) for its eighth direct fund.
The North Haven Real Estate Fund VIII Global (G8) and related co-investment vehicles attracted commitments from a range of investors.
Sovereign wealth funds, public and private pension funds, insurance companies and family offices backed the fund, MSREI said.
Olivier de Poulpiquet, co-chief executive at MSREI, said the fund had already invested in the US, the UK, Austria, Japan and Australia.
“G8’s flexible, global mandate allows us to look across all of our markets and select those opportunities [that] offer the best risk-adjusted returns,” he said.
Earlier this year, Morgan Stanley said its closed-end strategies across private equity, real assets and credit had been renamed North Haven as a result of regulatory requirements in the US under the Volcker Rule section of the Dodd-Frank Act.
MSREI is launching a core-plus US real estate fund to invest alongside its existing $14.7bn Prime Property Fund.
According to industry sources, the new fund will place 70-80% of its capital in the Prime Property Fund, investing the balance in core-plus and value-added properties.