Updated May 28, 2010
Morgan Stanley Real Estate Fund VII was closed at $4.7 billion, said spokeswoman Alyson Barnes.
The fund has been closed to further commitments since last year but remained technically open to tie up loose ends, sources told Pensions & Investments last June.
According to sources close to the firm, Morgan Stanley offered each investor a structured capital commitment reduction prior to closing the fund in response to the financial markets dislocation beginning in late 2008, which resulted in many investors facing liquidity constraints.
Last year, the $68 billion New Jersey State Investment Council, Trenton, and $1.6 billion Contra Costa County association withdrew their commitments. Current investors include the $43.2 billion Pennsylvania Public School Employees' Retirement Board, Harrisburg.
"At $4.7 billion of capital commitments, MSREF VII Global is the largest real estate fund to close since 2008," Ms. Barnes wrote in an e-mail. "Morgan Stanley Real Estate Investing has a 19-year track-record of investing in real estate globally through many different cycles, and is well positioned to take advantage of the significant investment opportunities this part of the real estate cycle presents to us."
