Morgan Stanley has fundraised $3.1 billion for a new fund committed to global real estate bets, surpassing the $2.7 billion in a prior vehicle, according to a report by Bloomberg on Thursday.
The vehicle, called North Haven Real Estate Fund X Global LP, or GIO, obtained backing from investors, including sovereign wealth funds, the U.S. and international pension funds, insurers, high-net-worth individuals, and family offices.
John Klopp, head of tangible global assets for Morgan Stanley Investment Management, stated that the company is playing the same tailwind sectors as the majority of others.
Klopp further stated that the firm is “very interested” in the hospitality sector, including hotels, and is watching the office sector while the bar remains high for real estate bets.
Morgan Stanley has been seeking to develop and renovate residential and industrial properties due to the high demand for so-called stabilized assets that have led to high pricing.
The new vehicle commenced its investment period on Jan.1 and focused on single properties and smaller portfolios involving an average equity investment of $60 million. The fund adopts maximum leverage of 65%. MS down -0.13 Pre-market trading