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Morgan Stanley Sells Last Property in Spain

23/01/2014 – Expansion

Morgan Stanley investment company has closed the sale of its last shopping center in Spain: Parque Ceuta, situated in the city of the same name.

Together with the transfer, the U.S. fund put a lock on its real estate fund in Spain, Msref (Morgan Stanley Real Estate Fund) 6. The investment vehicle was founded in 2006, in the middle of the real estate boom that had an unexpected end. That time, Morgan Stanley paid 120 million Euros to a Spanish group Lar and by the deed acquired four shopping centers in Alicante, Seville, Cuenca and Ceuta.

In June, the company put the property up for auction, all the centers except for the one in Ceuta. Baupost and Drago Capital also bid at the sale, but finally the opportunistic Incus Capital bid them out with 30 million Euros, with an 80% discount in regard to 2007 price.

The Purchaser

Morgan Stanley (…) sold its last property to HIG, a private equity firm that acquired the Bull portfolio from Sareb last summer for 100 million Euros. For the Ceuta shopping center the fund paid 18 million Euros.

Its competitors at the bidding were Incus Capital, Drago and a real estate fund of UBS. (…).

The property will be managed by Gestalia, the Lar Group company specialized in shopping centers. (…) The center occupies 14.481 square meters of Gross Lettable Area (GLA). Eroski is its main tenant (…). Also, it has 700 parking spaces.

Financing

HIG has been supported financially by its Spanish institution, La Caixa. (…)

After the divestment, Morgan Stanley preps for setting up a new fund with international investors in order to take advantage of the pocket of opportunities on the Spanish market and forget the Msref 6´s failure.

Original article: Expansión (Rocío Ruiz)

Translation: AURA REE

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