Morgan Stanley Investment Management’s real estate arm has added an $84.1m (€73.4m) Silicon Valley research and development facility to its US portfolio.
Morgan Stanley Real Estate Investing (MSREI), on behalf of its funds, has acquired the 189,481sqft property in Milpitas, California, which is let on a long-term net lease to semiconductor equipment maker KLA Corporation.
The KLA deal builds on MSREI’s recent investments in technology, data infrastructure and advanced manufacturing, including September’s acquisition of a 20MW industrial manufacturing facility occupied by climate-control provider Munters.
MSREI has also targeted defence-anchored assets, recently acquiring a 65MW industrial manufacturing facility occupied by BAE Systems.
David Gross, managing director, MSREI, said: “This acquisition reflects our continued conviction in Silicon Valley as a leading hub for semiconductor innovation and advanced manufacturing.
“The property’s specialised infrastructure, proximity to KLA’s global headquarters and significant investment by the tenant underscore the facility’s strategic importance.”
Will Milam, head of MSREI, US, said: “The breadth of our recent activity demonstrates how we are translating our highest-conviction themes into investments across the platform.
“We continue to see attractive opportunities in assets that support technology and data infrastructure, advanced manufacturing and logistics, and seniors housing, where long-term structural trends are driving real estate demand.”
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