Morgan Stanley is launching a $8 bn (EUR 6.29 bn) international opportunity fund for real estate investments in several markets outside the US, including Japan, Germany, China and India. Jay Mantz, co-head of Morgan Stanley Real Estate, told an investor presentation that the fund will go after riskier investments rather than traditional real estate funds, Bloomberg News reported.
Morgan Stanley is launching a $8 bn (EUR 6.29 bn) international opportunity fund for real estate investments in several markets outside the US, including Japan, Germany, China and India. Jay Mantz, co-head of Morgan Stanley Real Estate, told an investor presentation that the fund will go after riskier investments rather than traditional real estate funds, Bloomberg News reported.
The fund will be the largest of its kind in the world. The next largest real estate fund is Blackstone Group's $5.25 bn fund. Morgan Stanley said it is seeking annual returns of at least 20% by investing outside of the US, with 75% of the fund to be invested in developed markets such as Japan and Germany and the remainder in emerging markets, led by China and India.
This will be Morgan Stanley Real Estate's sixth fund at a time when other American banks are also expanding their real estate equity funds. Bear Stearns and its private equity arm, Bear Stearns Merchant Banking, have invested capital in a new fund launched by Quarter Circle Capital. Last month, Perella Weinberg, one of the newest boutique investment banks on Wall Street, hired Leon Bressler, the former ceo of French property group Unibail, to run a new real estate fund.
