Morgan Stanley closes German fund again, exits French office JV

The retrenchment of Morgan Stanley from the European real estate market went further this week with the complete closure of its German open-end property fund P2 Value - now for purchases in addition to sales - and disposal of a 25% stake in a French joint venture holding with REIT/SIIC Foncière des Régions of 115,000 sq.m. of office property. The closure of P2 Value comes 10 months after it shut the fund to withdrawals - certificate sales - citing the need for a valuation write-down of around 10%. Yesterday's announcement echoed the procedure. Walter Klug, head of Morgan Stanley Real Estate Germany, said the objective is to reopen the fund, and he plans to unveil a new business plan in July or August. "However, a liquidation cannot theoretically be ruled out," he said. (See upcoming PIE Editions for full story)