BERLIN-The German real estate management unit of US investmentbank Morgan Stanley is preparing to reopen its P2 Value propertyopen-end fund at the start of November - after a 23% write-down inthe value of its portfolio.

P2 Value, as many others too, has been closed since autumn 2008but, unlike several property open-fund peers, has made no attemptto re-open in the interim. The original closure came in theaftermath of the Lehman Brothers collapse with a run on redemptionsmainly, but not only, from larger wholesale investors. Smallinvestors were also panicked to move savings into bank savingsaccounts by a government announcement these would beguaranteed.

Morgan Stanley expects a third-party value assessment atre-opening of $1 billion to $1.1 billion, compared with the currentnet asset value of $1.2 billion. This is based on devaluations,risk reserve additions in individual cases, and potential losses onshort-term asset sales to raise liquidity. In addition it will makereserve and risk allocations of $27 million so that the certificateprice will fall 18% from end-August to $39.01 at re-opening.