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NEW YORK CITY-Morgan Stanley Real Estate has concluded fundraising for its Morgan Stanley Real Estate Fund V International with $4.2 billion of equity commitments from investors. Company officials tell GlobeSt.com that they were originally aiming to raise $3 billion.

Investors were from all over the world and included pension funds, endowments and foundations as well as private individuals. MSREF V International has already invested about 50% of its capital in portfolios across all property types, publicly traded or privately held real estate companies, and direct real estate assets and developments. The fund is geared toward assets primarily in Japan, Asia-Pacific and Western Europe. The firm expects to allocate the remaining capital in the next few years, company officials say.

Assets already acquired thorough the fund include the Tokyo headquarters of Mitsubishi Corp. and Mitsubishi Motors Corp., the Westin Tokyo and Chifley Tower and Royal Pines. The fund also has a 25.1% interest in DIC. Last May, a joint venture comprised of Morgan Stanley and GIC Real Estate, the property arm of the government of Singapore, acquired the 40-story Chifley Tower in Sydney and the 330-room Royal Pines Resort in Queensland. The firm also spent $1.3 billion for a Paris-based five-building portfolio.

"Equity capital flows into real estate continue to be robust and investors are looking globally for investment opportunities," says Sonny Kalsi, managing director and 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."

Since 1991, Morgan Stanley has formed six real estate opportunity funds. US-focused funds include MSREF I, MSREF II, MSREF III Domestic and MSREF IV. Domestic and international funds include MSREF III International and MSREF IV International. Morgan Stanley has acquired $77.5 billion of real estate assets worldwide and currently manages $43.1 billion in real estate assets. It originated upwards of $26 billion in commercial mortgages in 2005.

Instant Insights /

Morgan Stanley $4B Fund Takes Assets in Japan, France

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