This article is from the Australian Property Journal archive
GLOBAL investors have flooded Morgan Stanley's largest real estate fund, committing $US8 billion of equity to invest in non United States properties.
The fund will have the buying power of $US30 billion and has already invested 20% of the equity raised.
Investments include non-US real estate assets, portfolios and companies primarily in developed markets, including Japan, Western Europe, and Australia as well emerging markets like China, India, Russia, Turkey and Latin America.
Morgan Stanley Real Estate Investing’s managing director John Carrafiell said the record size of this fund, both for Morgan Stanley Real Estate and among real estate investment managers, is indicative of strong capital flows into real estate as new investors seek exposure to the asset class and existing investors increase their allocations.
“Real estate is increasingly becoming an important component of an asset allocation strategy because it offers portfolio diversification and the ability to invest in ‘real’ assets, which provide uncorrelated investment returns compared to other asset classes.” he added.
Morgan Stanley’s global co-head of investing Sonny Kalsi said attractive opportunities to invest in real estate around the globe will continue as demand for all asset types outpaces supply.
“Global employment growth, an aging population in the west, a growing population in the east, and accelerating urbanization in many emerging markets will drive the need for all types of quality real estate,” he added.
To date, the MSREF series of funds have acquired real estate assets globally totaling $US83.5 billion with assets under management of $US31.6 billion.
With the closing of MSREF V US in September 2006 at $US1.75 billion, MSREF raised a total of $US9.75 billion of equity to invest globally during the past year.
Australian Property Journal
