The Telegraph.co.uk recently reported that respected investment bank Morgan Stanley has begun raising $10 billion to fund a global real estate program to acquire distressed mortgage and property assets. The fund will be named the Morgan Stanley Real Estate Fund VII Global.
Morgan Stanley hopes to be in a position to compete with aggressive hedge funds and private investment firms in the buying up of distressed assets. The article notes that both Europe and the U.K. are also facing a decline in commercial property values.
The VII Global fnd will make debt and equity investments, with an emphasis on under-managed and distressed assets. Additionally, the fund will have a global focus: the U.S., the U.K., and Asia markets will be targeted.
Much like Barclays, Calyon, and Standard Chartered Banks, Morgan Stanley is becoming wise to the significant profits that are possible from wise investing in distressed assets.
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