MSREF completes second biggest Shanghai sale of 2010

Morgan Stanley Real Estate Investing has sold a serviced apartment scheme in Pudong for $177 million in a deal described by the South China Morning Post as the second largest in Shanghai in 2010.

Morgan Stanley Real Estate Investing has continued to exit assets with the $177 million sale of a serviced apartment scheme in Pudong to the JP Morgan Greater China Property Fund, according to a report by the South China Morning Post.

The newspaper said the deal represented the second largest real estate sale in Shanghai in 2010 and that the price paid reflected approximately 26,000 yuan (€2,960; $3,838) a square metre, an increase on the 18,000 yuan paid by MSREI for the scheme in 2006.

The most expensive sale in Shanghai this year was Goldman Sachs’ sale of Shanghai Garden Plaza to Shanghai Forte Land for $330 million in February.

Morgan Stanley has been a net seller of assets according to real estate data firm Real Capital Analytics. According to research by the data provider earlier this year, Morgan Stanley sold $6.19 billion of real estate globally between September 2008 and April 2010. On a net transactions basis, the firm found that Morgan Stanley was a net seller of $5.74 billion during that period.

Other recent sales in Asia by MSREI include the Makena Beach & Golf Resort in Hawaii, which was acquired by the projects lenders. Last year, it sold another serviced apartment block in Shanghai for $114 million.