Morgan Stanley

Brian Niles and James Lapushner to Join Morgan Stanley Real Estate

May 15, 2006

London, Frankfurt —

Morgan Stanley today announced two senior hires in its real estate business: James Lapushner will join as an Executive Director and Head of Acquisitions for Germany, and Brian Niles will join as an Executive Director and Chief Financial Officer for Special Situations Fund III ("SSIII") and Chief Operating Officer for Morgan Stanley Real Estate Investing ("MSREI") in Europe. Both appointments are effective mid June 2006.

Mr. Lapushner, who will be based in Frankfurt, joins from Credit Suisse, where he most recently ran that firm's real estate lending operations in Germany, Austria, Switzerland, and Central Europe. In his new role, Mr. Lapushner will lead the firm's already established, but still growing investing effort in Germany and report to Glenn Aaronson, head of Morgan Stanley Real Estate's investing business in Germany.

Mr. Niles, who will be based in London, joins from Goldman Sachs, where he was most recently a senior member of their real estate lending and principal finance group. In his new role, Mr. Niles will focus his efforts on Morgan Stanley's recently established Special Situations Fund III, as well as helping to manage the European investing operations and pipeline across the various Morgan Stanley Real Estate funds. As CFO of SSIII, Brian will report to Tim Morris, Chief Investment Officer of SSIII and John Kessler, CFO of MSREI. As COO of MSREI in Europe, he will report jointly to Sonny Kalsi, CIO of MSREI, and Struan Robertson, Head of Morgan Stanley Real Estate in Europe.

John Carrafiell, Global Co-Head of Morgan Stanley Real Estate, said: "Our Real Estate business continues to be one of the most exciting areas of growth in Europe. The addition of James and Brian to an already strong team will be of great benefit to us as we continue to develop this industry-leading business."

Morgan Stanley Real Estate is comprised of three major global businesses: Investing, Banking, and Lending. Since 1991, Morgan Stanley has acquired $77.5 billion of real estate assets worldwide and currently manages $43.1 billion in real estate assets on behalf of its clients. In addition, Morgan Stanley Real Estate provides a complete range of market-leading investment banking services to its clients including advice on strategy, mergers, acquisitions and restructurings, as well as underwriting public and private debt and equity financings. Morgan Stanley is also a global leader in real estate lending and, using its own capital, originated upwards of $26 billion in commercial mortgages in 2005.

Morgan Stanley is a global financial services firm and a market leader in securities, investment management, and credit services. With more than 600 offices in 30 countries, Morgan Stanley connects people, ideas and capital to help clients achieve their financial aspirations.

Carlos Melville

Corporate Communications

+44 20 7425 8955