Morgan Stanley Investment Management is to launch a global indirect real estate fund, to sit alongside its European, Asian and US vehicles.
The fund, which will be structured as a Luxembourg-domiciled SICAV, will allow investors to gain access to a range of real estate securities managed by Morgan Stanley’s property team, led by Theodore Bigman.
Although the new fund does not have a target size, it should compare to the existing funds, which have a combined asset value of $2.6bn.
A spokesman for MSIM confirmed that the fund would be launched next week, citing client demand as the key driver for the new vehicle.
“We are getting more clients saying they would like us to make their asset allocation decisions for them,” he said
Although MSIM runs a number of global security funds for institutional investors as segregated accounts, this is the first time the fund manager has launched a global pooled vehicle from its London office.
Through its three regional vehicles, MSIM invests in most of the major global property companies and real estate investment trusts, including Land Securities and British Land, within its European fund and Simon Property Group and Equity Residential in the US vehicle. More than 50% of the European fund is invested in UK stocks.
The spokesman said: “The global vehicle will be able to change its weighting both on a regional and local level, moving in and out of regions, countries and companies to reflect changing market conditions.”
Worldwide, MSIM’s manages more than $15bn of indirect real estate assets, including assets managed from its London office.
