Morgan Stanley raising about $680mln for Japan real estate fund.

The Morgan Stanley-managed fund is due to close in June and expected to raise at least $684mln based on current investor commitments, according to the people, both of whom declined to be identified because the information hasn’t been made public.

Morgan Stanley is raising about 100 billion yen ($684 million) for a Japan-focused real estate fund, two people familiar with the matter said, highlighting investor interest in property as the world’s fourth-largest economy emerges from years of deflation and standstill prices.

The Morgan Stanley-managed fund is due to close in June and expected to raise at least 100 billion yen based on current investor commitments, according to the people, both of whom declined to be identified because the information hasn’t been made public. The final size of the fund could change by the closing.

The U.S. firm is the latest global asset manager to set its sights on Japanese real estate, an asset class that has come back into favour after years of stop-start economic growth, flat wages and zero inflation.

The investment case has changed sharply over the last year, most notably after the central bank raised interest rates for the first time in 17 years last March.

Prices, including of real estate, are now going up: land prices across Japan grew 2.7% in 2024, the fastest pace since 1991, after which the country’s “lost decades” began, a land ministry survey showed.

Source: Zawya