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MSREI in €320m early G8 deal

The bank platform has made an early outlay for its latest global opportunistic fund. It has invested in the Millennium Tower office building and Millennium City shopping mall and entertainment center in V 

Morgan Stanley Real Estate Investing (MSREI) has invested in the Millennium Tower office building and Millennium City shopping mall and entertainment centre in Vienna, Austria, for around €320 million.

The deal is thought to be among the earliest for its new 'G8' fund for which capital commitments in the fund and coinvestment structures total approximately $1 billion as PERE has reported. The company held a first close for the Morgan Stanley Real Estate Fund VIII Global last month.

In a statement on the Austria deal, the bank's real estate investment arm said the assets were acquired from MPC Capital, and that it had teamed up to make the purchase with CC Real, a shopping center operator with €535 million of assets in Austria and Croatia.

Brian Niles, head of MSREI EMEA, said in a statement: “This investment is consistent with our strategy of buying high quality assets with potential to improve underlying performance through asset management initiatives.”

Millennium Tower and Millennium City opened in 1999 and 2003 respectively and are situated on the Danube waterfront. The tower is one of the tallest offices in Austria, standing at 202 metres.

The shopping center is 570,000 square feet while the office measures 430,000 square feet.

Germany's Aareal Bank financed the transaction.