Global investment bank launches $370m fund - corporate real estate

Tuesday, March 23, 2010

Morgan Stanley raises funds to invest in corporate real estate

By Ashley Brunskill

Leading investment bank Morgan Stanley has launched a $370 million (£248 million) fund for secondary interests including corporate real estate.

Morgan Stanley's Investment Management arm Alternative Investment Partners (AIP) managed to raise the money to invest in "secondary interests" such as corporate real estate.

Joseph Stecher, chief investment officer with AIP Real Estate Fund of Funds, said the move reflected an opportunity in the market.

He added that the company would focus on small to mid-size managers who could be ready to generate significant progress in terms of performance without initial teething issues that may blight corporate real estate, such as start-up costs.

He said: "For the first time ever, investors in private equity real estate funds are selling significant interests in the secondary market and as a result, we are finding tremendous opportunities to acquire high-quality assets at attractive valuations."

It is a significant move in an industry that already has the attention of a number of global investment banks such as European giant BNP Paribas's real estate business.

AIP's operations are split between offices in London and New York.

Source: ask-re The Property People LLP