Special Situations, structured as an open-ended fund, primarilyseeks to make non-controlling investments in an array of realestate securities in growth/emerging, developed and distressedmarkets around the world. As of the end of 2007, Special Situationscommitted approximately $4.8 billion of equity, with 62 closedinvestments in China, Australia, India, Russia, Poland, Brazil,Mexico, the US, Japan and Western Europe, among other areas. TheFund's investment professionals form a core group with extensivecollaborative experience, maintaining a team presence in each ofthe regions where it has invested.

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Willem de Geus, managing director and global portfolio managerof Special Situations, says that investors continue to be attractedto the global opportunistic real estate strategy of the funddespite recent turbulence in the global capital markets. "The heavyemphasis on the high growth emerging economies--China, India,Russia, Poland, Mexico and Brazil--the flexibility to invest acrossthe capital structure of real estate companies, and the ability toinvest in developments and recurring income-producing assets in allreal estate sectors is what makes this fund attractive in themarketplace."

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John Carrafiell, joint global head of Morgan Stanley Real EstateInvesting and president of Special Situations says that "thissubstantial additional capital raise for Special Situations issignificant, particularly given the current challenging fundraisingenvironment. It demonstrates strong investor support for the Fund'sstrategy, underscoring the global breadth of Morgan Stanley RealEstate's platform and the team's ability to source attractiveopportunities in a volatile market."

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Tim Morris, managing director and CIO of Special Situations saysthat "with the completion of this successful follow-on equityraise, Special Situations is in an enhanced position with ampleliquidity to continue to pursue its flexible mandate and willaccess investment opportunities now available due to thesignificant deleveraging occurring globally. Special Situationswill continue to provide dynamic real estate companies in theemerging markets with pre-IPO capital, as well as increase itsallocation to distressed opportunities, focusing on the debtmarkets particularly in the developed economies."

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Special Situations Fund III, which had an initial closing inAugust 2006, is the third in a series of successful real estatefunds. Special Situations Fund I, which is fully liquidated,launched in 1997 and invested primarily in the US and Asia. SpecialSituations Fund II launched in 2000 and invested solely inEurope.

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Natalie Dolce

Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.