Real estate investor profile: Morgan Stanley’s biggest calls
Morgan Stanley’s real estate investing business has grown explosively by backing its founders’ ballsy, counter-consensus calls in Germany, Japan, and hotels and developers in emerging markets. While the firm seeks to implant this can-do spirit into its other investing businesses, the real estate arm wants to continue its outperformance in tougher market conditions. Peter Lee reports.
Previously this had sat, somewhat oddly it appeared to outsiders, within Morgan Stanley’s investment bank. More significantly to Mack, it had been a huge success, growing from a $450 million opportunistic fund set up to acquire value from the wreckage of the US real estate crash in 1991 into a global business, with more than $56 billion of third-party assets under management and control over more than $82 billion of real estate assets, including equity stakes in public real estate companies.