Morgan Stanley Real Estate Raises $1.75 Billion for Fifth MSREF U.S. Fund

New York —

Morgan Stanley Real Estate announced today that it has successfully concluded fundraising for Morgan Stanley Real Estate Fund (MSREF) V U.S. with $1.75 billion of equity commitments. The Fund is the fifth in a series of funds to invest in real estate assets, commercial and residential developments, and publicly traded or privately held real estate companies and portfolios. MSREF V U.S. has already committed approximately 60% of its capital to these types of investments.

"Compelling investment opportunities continue to exist throughout the United States from improving property market fundamentals, secular demographic trends and take-private transactions," said Michael Franco, Managing Director and Head of MSREF U.S. "MSREF V U.S. generated tremendous investor interest raising nearly four times the equity capital of its predecessor fund MSREF IV Domestic in 2000."

Morgan Stanley Real Estate has been investing since 1991 and has an established record of successfully executing real estate investment programs on a global basis. U.S.-focused funds include MSREF I, MSREF II, MSREF III Domestic, MSREF IV Domestic and now MSREF V U.S. International funds include MSREF III International, MSREF IV International and MSREF V International.

Morgan Stanley Real Estate is comprised of three major global businesses: Investing, Banking, and Lending. Since 1991, Morgan Stanley has acquired $87.7 billion of real estate assets worldwide and currently manages $50.9 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. For more information about Morgan Stanley Real Estate, go to www.morganstanley.com/realestate.

Morgan Stanley (NYSE: MS) 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.