TOKYO/HONG KONG, June 11 (Reuters) – Morgan Stanley (MS.N)
has raised $4.7 billion for its new global property fund, MSREF
VII, 46 percent less than its previous such fund.

Fundraising for MSREF Vll came after the global financial
crisis and after media reports said Morgan Stanley had told
investors that its previous real estate fund, MSREF VI, could
lose as much as $5.4 billion.

“At $4.7 billion of capital commitments, MSREF VII Global
is the largest real estate fund to close since 2008,” the
spokesman said in a statement. “Morgan Stanley … is
well-positioned to take advantage of the significant investment
opportunities this part of the real estate cycle presents to
us.”

The MSREF VI fund had raised $8.8 billion in 2007. In April,
it won an agreement with lenders for a 60-day extension on about
$2.4 billion in loans used in a troubled hotel investment in
Japan. [ID:nTOE63P075]

In 2008, a banking source said Morgan Stanley hoped to raise
$10 billion for MSREF VII, but the global downturn made it tough
for companies to raise funds globally.

The PERE magazine said in a recent report that Morgan
Stanley had begun to invest its latest fund mainly in the United
States, Europe and Japan after allowing limited partners to
reduce their commitments.

The magazine quoted Morgan Stanley executives as saying that
it was actively sourcing new deals in the United States, with
the firm looking to access distressed equity through debt
structures.
(See www.reutersrealestate.com for Reuters’ global service for
real estate professionals)
(Editing by Will Waterman)