Morgan Stanley Real Estate Investment (MSREI), the real estate fund of the global investment bank Morgan Stanley, has invested in a realty project in the country after more than four years.
MSREI invested $90 million in Mumbai-based realtor Sheth Developer’s project in Andheri in part debt-equity form, to help refinance the amount raised to acquire the land parcel from glass major Borosil, a senior official privy to the transaction said.
Borosil Glass Works had sold its 18 acre industrial plot near Andheri-Kurla Road to Sheth Developers for Rs 875 crore and the latter has launched a township project on that land which is called Sheth Vasant Oasis.
The official said, “It is a part debt-equity form and the money has come in for refinancing of loans. When Sheth bought the property, international property consultant Jones Lang LaSalle India helped them with the financing.”
An e-mail query sent to Morgan Stanley Real Estate Investment did not elicit any reply till the time of publishing this article and attempts to reach the developer failed as well.
In November last year, Shirish Godbole joined Morgan Stanley as the head of global real estate investment and it is the first deal that Morgan Stanley has undertaken under his leadership. Till date, Morgan Stanley has invested close to $750 million in Indian realty market and according to sources, it has plans to speed up its investments once again. The fund is expected to invest another $150-200 million by the end of this year. The investment banking major had earlier funded Vikas Oberoi-led Oberoi Realty before its initial public offering. Its last investment came in 2007 when it put in $130 million in Pune-based developer Panchshil Realty.
According to VCCEdge the research platform of VCCircle, PE funds and NBFCs invested $1.43 billion in the Indian real estate space in 2011, up over 75 per cent, compared to the investments made in 2010.