REAL ESTATE – Major pension funds around the world have invested in the new Morgan Stanley global real estate fund, the bank says.

It said it has raised $4.2bn (€3.53bn) of equity for its Morgan Stanley Real Estate Fund (MSREF) V International.

The cash came from investors in North America, Europe, Asia, Africa and Australia, a statement said.

This included “major pension funds, endowments and foundations, and private individuals”. It did not name them.

The Fund will acquire a diversified portfolio of assets primarily in Japan, Asia-Pacific and Europe.

"Equity capital flows into real estate continue to be robust and investors are looking globally for investment opportunities," said Sonny Kalsi, global head of Morgan Stanley Real Estate Investing.

"We are able to successfully identify and execute on opportunities that exist around the world based on our geographically diverse platform, our worldwide relationships with corporations and real estate companies, and our view that real estate market fundamentals continue to improve."

MSREF V International will invest in real estate portfolios across all property types, publicly traded or privately held real estate companies, and direct real estate assets and developments.

It has already committed some 50% of its capital to these types of investments predominantly in Japan, China and Western Europe.