Morgan Stanley is raising a new $10bn (£5.1bn) global real estate fund to take advantage of distressed and property assets. Sunday Telegraph
The investment bank, through its sizeable real estate division, has already begun the process of raising money for the fund, which is set to close by late summer. The fund, to be called Morgan Stanley Real Estate Fund VII Global, is the latest of a string of property funds being established to take advantage of the fallout from the crisis in the credit markets.
It is expected that the continuing lack of funding in the property marketplace will mean that some owners will need to sell assets quickly in order to remain afloat. In addition, the continued decline in commercial property yields, in particular in the UK and continental Europe, is making it difficult for some real estate groups to meet debt-servicing costs.