Thursday, September 4, 2008

Morgan Stanley forms $10B real estate fund

Undaunted by concerns about a weakening real estate market, Morgan Stanley is raising $10 billion for a global property fund, with at least $1.5 billion of that being funneled into China, according to a Reuters report that quoted unidentified sources.

A spokeswoman for New York-based Morgan Stanley declined to comment specifically on the fund, but she did say that the firm is busy with fundraising activities.

The Morgan Stanley Real Estate Fund VII Global will invest at least $1.46 billion in China over the next few years, with most of its focus on larger cities such as Shanghai, where the price for a luxury downtown apartment can exceed $20 million.

The retail-fundraising portion, which required $1 million from individual investors, is complete, while the institutional part, which requires at least a $10 million commitment, is expected to be completed soon, Reuters reported.

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