(Bloomberg) US banking giant Morgan Stanley has generated $3.1 billion to bet on global real estate, more than $2 billion raised in 2018 for similar bets.
Investors that include sovereign wealth funds, domestic and international pension funds, insurers, family offices, and high net-worth investors participated.
The new fund, North Haven Real Estate Fund X Global LP, will mainly focus on the warehouse and multifamily properties sector. Morgan Stanley cites strong fundamentals and growth opportunities in the two areas.
The so-called stabilized assets have been growing in demand, which has boosted prices. Morgan Stanley is also trying to reposition or create core assets before selling them.
Morgan Stanley’s new investment vehicle started its investment period on January 1, focusing on smaller portfolios and single properties with an average equity stake of $60 million. The fund uses maximum leverage of 65%.
The investment vehicle is the latest entrant into Morgan Stanley’s alternatives platform that controls over $100 billion AUM, with $52 billion in real estate.
MY: NYSE is down -0.22% on premarket.
