This article is from the Australian Property Journal archive
MORGAN Stanley intends raising around $US10 billion for a global property fund to take advantage of the growing amount of distressed property assets worldwide"¦ and Australia is on the menu.
Sources have told Australian Property Journal that the investment bank, which took over Investa Property Group and Grand Hotel Group, has already put into place the process of raising money for the fund, which is expected to be realised in a matter of months.
The fund will be called Morgan Stanley Real Estate Fund VII Global and is the latest, but potentially the largest, of a number of property funds being established to take advantage of the worldwide fallout from credit market crisis.
The continuing lack of funding in the property marketplace will mean some owners will need to sell assets quickly in order to remain afloat.
Morgan Stanley believes the decline in commercial property yields, particularly in the United Kingdom and continental Europe, is making it difficult for some real estate groups to meet debt-servicing costs.
A source within Morgan Stanley Australia told Australian Property Journal last night that a portion of the funds for distressed properties has been allocated for the Australian property market.
Australian Property Journal
