Morgan Stanley extends property fund's investment period - report

A company spokesman told Reuters that in exchange for this concession, Morgan Stanley's property team has agreed to reduce the fees the fund charges and also cut the vehicle's size by $700 million. As the fund, known as VII Global, has yet to draw down all of the investors' money, it will trim down commitments rather than returning cash.

VII Global would have reached the end of its investment period in June, but only around $1.9 billion (or 40% of the fund) has been invested so far. It will now have until June 2013 to deploy the remainder.

LPs in the fund - which include Government of Singapore Investment Corp. (GIC), China Investment Corp. (CIC), General Motors and Canada Pension Plan Investment Board - have received written confirmation of the extension.

Fund VII's predecessor, MSREF VI, was more than twice the size, having raised $8.8 billion in 2007. Reports that MSREF VI was facing a loss of as much as $5.4 billion caused fundraising difficulties for its successor however.

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• Topics
• Real estate
• Real estate
• Real estate
• Morgan Stanley Private Equity Asia
• Fundraising
• Real estate