The “wall of money” into property has helped Morgan Stanley Real Estate to raise the largest-ever real estate fund that will have more than $30bn of buying power.
The global property giant has raised $8bn from institutional and retail investors from the US, Europe, the Middle East and Asia. Morgan Stanley itself injected just over 20% of the total capital raised.
The fund will focus on non-US investments, primarily in Japan and Western Europe, and emerging markets such as China, India and Russia.
“The record size of this fund, both for Morgan Stanley Real Estate and among real estate investment managers, is indicative of strong capital flows into real estate as new investors seek exposure to the asset class,” said John Carrafiell, managing director and global co-head of Morgan Stanley Real Estate.
“Real estate is increasingly becoming an important component of an asset allocation strategy.”
