Morgan Stanley Fund Defaults on $3 Billion Tokyo Real Estate Deal

via Reuters:

TOKYO (Reuters) – A Morgan Stanley property fund failed to make $3.3 billion in debt payments by a deadline on Friday, handing over the keys to a central Tokyo office building to Blackstone (BX.N) and other investors, the largest repayment failure of its kind in Japan.

Taking advantage of a run-up in property prices, MSREF V refinanced its debt on the Shinagawa property in 2007 with new debt worth 278 billion yen, twice the value of its purchase and likely yielding a tidy profit for the fund.

The refinanced debt was sold in six different tranches by Morgan Stanley to investors.

http://news.yahoo.com/s/nm/20110415/bs_nm/us_morgan_stanley_real_estate

James Gorman, the CEO of Morgan Stanley, saw his 2010 compensation rise to $15.2 million from $6.5 million in 2009, according to an Associated Press analysis of data filed with regulators.

http://www.businessweek.com/ap/financialnews/D9MJM2QO0.htm

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