Morgan Stanley Real Estate Fund VII Global and Redos Real Estate Form Joint Venture to Invest in Retail Properties and Complete First Transaction

Frankfurt —

Morgan Stanley Real Estate Fund VII Global (MSREF VII) and Redos Real Estate GmbH (“Redos”) today announced that they have jointly acquired a portfolio of 23 retail properties mostly in Bavaria from a group of private investors. Hamburg-based Redos is one of the leading investors, project developers and asset managers of the German retail property market. Terms of the acquisition were not disclosed.

The “Bavaria” portfolio comprises 23 retail properties, particularly self-service hypermarkets, mostly in Bavaria. It comprises over 200,000 square meters of rented area and a total plot area of more than 500,000 square meters.

“We are pleased to have completed this transaction with Redos,“ said Thomas Hartl, Country Head for Real Estate Investing in Germany at Morgan Stanley. “The joint venture combines the local retail know-how of Redos with the financial strength and global expertise of Morgan Stanley Real Estate Investing. We consider retail in Germany a very attractive asset class and are looking forward to working together on further deals.”

The transaction was executed through a joint venture between Redos Real Estate and MSREF VII. The joint venture targets investments in specialist store centers and self-service department stores and plans to invest several hundred million Euros in retail properties in Germany over the next two to three years. Redos Real Estate has many years of expertise in this sector, not only pertaining to the development but also to the optimization of retail properties. Target investments under consideration therefore are assets with long-term leases but also properties with investment and optimization potential.

“We are happy that we have won a financially sound partner with Morgan Stanley in order to acquire promising properties on a large scale”, says Oliver Herrmann, Managing Director of Redos. “Particularly in the current situation, there are many excellent opportunities to be found all over Germany.”

About Morgan Stanley Real Estate Investing

Morgan Stanley Real Estate Investing is one of the largest real estate investment managers globally. Since 1991, it has acquired $173.7 billion of real estate assets worldwide and currently manages $59.5 billion in real estate assets on behalf of its clients. MSREF VII, which closed in May 2010 with US$4.7 billion, is one of the largest real estate funds raised since 2008 and aims to invest in Real Estate worldwide. For more information about Morgan Stanley Real Estate Investing, please visit www.morganstanley.com/realestate.

Morgan Stanley is a leading global financial services firm providing a wide range of investment

banking, securities, investment management and wealth management services. The Firm's employees serve clients worldwide including corporations, governments, institutions and individuals from more than 1,300 offices in 42 countries. For further information about Morgan Stanley, please visit www.morganstanley.com

About Redos

Redos Real Estate is an asset manager and investor specializing in the German retail sector. Redos Real Estate manages a portfolio of more than 100 retail properties with a total value of more than €1.0 billion. For further information about Redos, please visit www.redos-real-estate.de