Morgan Stanley Real Estate, Onex Real Estate and Sawyer Realty Holdings LLC Sell Town and Country Trust Properties in Three Transactions Totaling $677.4 Million

New York —

Morgan Stanley Real Estate, Onex Real Estate and Sawyer Realty Holdings LLC completed the sale of 16 apartment properties from the previously acquired Town and Country Trust in three separate transactions for a total consideration of $677.4 million.

The Pennsylvania portfolio, including seven properties totaling 2,073 units, was sold to a private real estate company for a total of $134.0 million.  Nine suburban Baltimore properties were sold in two separate transactions to undisclosed buyers, including five properties totaling 3,191 units for $377.1 million and four properties totaling 1,588 units for $166.3 million. 

Morgan Stanley acted as financial advisor to Morgan Stanley Real Estate on the transactions.

Morgan Stanley Real Estate is comprised of three major global businesses: Investing, Banking and Lending. Since 1991, Morgan Stanley has acquired $102.0 billion of real estate assets worldwide and currently manages $60.5 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 offering approximately $143.0 billion of CMBS through the capital markets since 1997, including $27.8 billion in 2005 and $22.5 billion as of September 30, 2006.  For more information about Morgan Stanley Real Estate, go to www.morganstanley.com/realestate.

Morgan Stanley (NYSE: MS) is a leading global financial services firm providing a wide range of investment banking, securities, investment management, wealth management and credit services.  The Firm's employees serve clients worldwide including corporations, governments, institutions and individuals from more than 600 offices in 30 countries.  For further information about Morgan Stanley, please visit www.morganstanley.com.

Contact: Media Relations, Alyson D’Ambrisi, 212.761.4649