Morgan Stanley has become the favourite i-banker for realtors

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The investment banking arm of US-based Morgan Stanley has become the favourite adviser to real estate developers seeking money through stake sales in rental subsidiaries and real estate investment trusts.

Morgan Stanley’s investment banking arm, headed by V K Bansal, is handling a stake sale by the promoters of DLF in the the group’s rental arm DLF Cyber City Developers to raise an expected Rs 12,000 crore. It is also handling a stake sale by promoters of K Raheja Corp in its office rental arm to raise an expected $500 million.

The investment bank is handling the REITs of Blackstone, the Bengaluru-based Embassy group and the Pune-based Panchshil Realty. While home grown JM Financial is involved in K Raheja Corp stake sale, US based JP Morgan is handling stake sale by Prestige promoters in rental arm and DLF stake sale in rental arm. Morgan Stanley is also in talks with developers in Bengaluru and Mumbai for selling stakes in their rental companies, according to sources. Put together, it is helping developers raise over $3 billion. A e-mail to Morgan Stanley did not elicit a response.

Morgan Stanley’s rise in investment banking in real estate coincides with its real estate investment arm going slow in India. It was now looking to raise a new fund for India, sources said. This development could not be verified independently.

The investment banking arm of US-based Morgan Stanley has become the favourite adviser to real estate developers seeking money through stake sales in rental subsidiaries and real estate investment trusts.

Morgan Stanley’s investment banking arm, headed by V K Bansal, is handling a stake sale by the promoters of DLF in the the group’s rental arm DLF Cyber City Developers to raise an expected Rs 12,000 crore. It is also handling a stake sale by promoters of K Raheja Corp in its office rental arm to raise an expected $500 million.

The investment bank is handling the REITs of Blackstone, the Bengaluru-based Embassy group and the Pune-based Panchshil Realty. While home grown JM Financial is involved in K Raheja Corp stake sale, US based JP Morgan is handling stake sale by Prestige promoters in rental arm and DLF stake sale in rental arm. Morgan Stanley is also in talks with developers in Bengaluru and Mumbai for selling stakes in their rental companies, according to sources. Put together, it is helping developers raise over $3 billion. A e-mail to Morgan Stanley did not elicit a response.

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