Morgan Stanley contemplates reducing real estate portfolio, newspaper report claims

21 July 2010

Investment bank Morgan Stanley is currently considering the fate of its real estate portfolio, a newspaper report has claimed.

According to the Wall Street Journal, which cited unnamed sources familiar with the matter, the financial institution is drawing up plans for the future of its Morgan Stanley Real Estate Fund (Msref).

The bank is reported to be contemplating the sale of the collection in its entirety or reducing it in size, although the plans are in their early stages.

A spokeswoman for Morgan Stanley told the news provider: “We're not in discussions on the sale of the business.”

Firms such as BlackRock, Brookfield Asset Management, TPG and KKR are reported to be among the list of interested parties although none of them have confirmed their interest in the investment opportunity.

Meanwhile, the South China Morning Post reported that Msref recently sold a serviced-apartment building to JPMorgan Chase in Shanghai.

The latter’s Greater China Fund is believed to have acquired a 284 unit apartment from Msref.

By Jim Ottewill

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