Morgan Stanley is raising USD8 billion for a new high-yield real-estate fund that will invest in overseas markets.
The new fund, Morgan Stanley Real Estate Fund VI International, will pursue annual returns of at least 20 percent, reports said. Seventy-five percent of its assets will be invested in developed markets such as Japan and in emerging markets such as China and India.
The fund will be the largest of its kind, exceeding the USD5.25-billion Blackstone Real Estate Partners V fund of New York-based Blackstone Group LP.
Morgan Stanley Real Estate has acquired USD87.7 billion of real estate assets worldwide and currently manages approximately USD51 billion in real estate assets on behalf of its clients.
Morgan Stanley, which also provides real estate lending services, originated more than USD33 billion in commercial mortgages in 2005.