Morgan Stanley Real Estate Investing is eyeing debt investments as it looks to future US opportunities – particularly FDIC loan portfolios.
Speaking to PERE, the firm’s head of Americas real estate global real estate debt investing, John Klopp, said the firm would be looking to debt-related investments in the coming year, after originally cutting its teeth on buying non-performing loans during the RTC. 
For better or worse the reality is that the industry is overleveraged. As a result, many of the opportunities we will be looking at in the coming year will, in some way, shape or form, be related to debt.
“Today, the value is in many cases found through the debt rather than the equity,” the former Capital Trust co-founder said in an interview in the March issue of PERE.
“For better or worse the reality is that the industry is overleveraged. As a result, many of the opportunities we will be looking at in the coming year will, in some way, shape or form, be related to debt,” Klopp added.
Klopp, who started with Morgan Stanley Real Estate Investing in February, said the firm was gearing itself up to take advantage of the deleveraging of the real estate markets globally. But he said the firm was taking “very, very seriously” legacy issues, not least with reported write-downs of up to 60 percent on some funds.
The firm, he said, had “every intention of doing the best job it can to resolve those problems and produce the best results we can for our partners. It’s a very important part of what I’m doing.”
To read the full article, click here.
If you do not receive this within five minutes, please try to sign in again. If the problem persists, please email: 
