Morgan Stanley Real Estate Investing has agreed an extension for the investment period of North Haven Real Estate Fund X Global by a year to the end of 2025, PERE has learned.
The fund, which was closed in September 2021, attracted $3.1 billion from investors for investment in a diversified range of property types and geographies globally, according to PERE data.
The New York-based firm began investing the fund’s capital in 2021, with a four-year investment period initially due to close by year-end 2024.
According to a source close to the matter, MSREI approached the fund’s investors in Q3 of last year in relation to extending the vehicle’s investment period, in light of changes to market conditions in early 2022 which made it more difficult to deploy capital in North America and Europe in particular.
These included rising inflation and rising interest rates, elevated real estate asset pricing and a wide bid-ask spread among buyers and sellers. By the midpoint of 2023, only around a third of the fund’s capital had been committed, PERE’s source said.
Later in 2023, the fund’s investor advisory committee – which represents the majority of the fund’s committed capital – unanimously agreed to extend NHREF X Global’s investment period until the end of 2025, according to the source.
Investors in the fund include sovereign wealth funds Australia Future Fund and China Investment Corporation, and public pension funds National Pension Service of Korea, Maryland State Retirement and Pension System and Sampension, according to PERE data.
As of the start of 2024, around 50 percent of the fund’s capital – equating to around $1.55 billion – remains undeployed, PERE understands. Toward the end of 2023, some of the fund’s capital was invested in the US and Europe in light of an increase in viable opportunities, as well as in Japan, where MSREI has continued to invest throughout the investment period, PERE’s source said.
MSREI declined to comment on the matter.
The news of NHREF X Global’s extension comes amid results of a global-wide slowdown in real estate dealmaking last year. According to research firm MSCI, $615 billion in commercial property volume was traded in 2023, down 48 percent from $1.18 trillion in 2022. This is the lowest annual total since 2012.
MSREI is ranked 73rd in the 2023 PERE 100 list of the world’s largest private real estate investment managers by capital raised in the past five years.
According to PERE data, the previous iteration in MSREI’s North Haven Real Estate Fund Global series attracted $2.73 billion in commitments and closed in January 2018. More recently, MSREI closed its latest North America-focused debt fund, North Haven Expansion Credit II, in December 2023 with $450 million in capital.
While North Haven Real Estate Fund X Global is traditionally set up to invest in equity situations, it is understood the fund has a flexible mandate which enables it to be invested in credit opportunities too.
If you do not receive this within five minutes, please try to sign in again. If the problem persists, please email: 
