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9/08/2025 – 05:00 AM
NEW YORK – (BUSINESS WIRE) – Morgan Stanley Real Estate Investing (MSREI), the private‑equity arm of Morgan Stanley Investment Management (MSIM), announced today that its first North Haven Real Estate Japan Strategy Fund I (JSF) has closed, raising JPY 131 billion (≈US$900 million). The fund surpassed its original target of JPY 75 billion (≈US$500 million). Most investors are Japanese pension funds and financial institutions, complemented by foreign sovereign‑wealth funds.
JSF is a closed‑end, yen‑denominated vehicle that will target assets benefiting from Japan’s structural drivers: domestic urbanisation, international migration, high office‑to‑office return rates, growing office employment, and robust e‑commerce and supply‑chain shifts. The fund will focus on residential, office and industrial properties in Tokyo, Osaka and other key markets, aiming for attractive risk‑adjusted returns through prudent leverage. Its first acquisition, completed in March 2025, represents roughly 8 % of the fund’s commitments across several residential deals.
“Japan’s macro outlook is favourable, with inflation, wage growth, regulatory reforms and attractive yield spreads supporting real‑estate fundamentals,” said Yu Kawamata, Co‑Head of MSREI Asia Investments and Head of MSREI Japan. “With over 25 years of experience in Japan, MSREI can leverage deep local knowledge and long‑standing relationships to deploy JSF effectively.”
Toru Bando, CIO of MSREI and Head of MSREI Asia, added: “We’re delighted by the strong investor support for JSF, both from existing and new participants who recognise MSREI’s long history and expertise in Japan. Since 1998, we have deployed more than US$10 billion of equity capital in the country. As domestic capital shifts toward alternative assets, including real estate, JSF offers a differentiated, country‑specific solution that blends MSREI’s local capabilities with a global perspective, backed by Morgan Stanley’s worldwide real‑estate portfolio of over US$50 billion and its extensive franchise in Japan.”
**About Morgan Stanley Real Estate Investing**
MSREI is Morgan Stanley’s global private‑real‑estate investment management business. With a patient, disciplined approach across value‑add/opportunistic and core/core‑plus strategies, MSREI operates 17 offices worldwide. As of 30 June 2025, it manages $54 billion of gross real‑estate assets for clients.
**About Morgan Stanley Investment Management**
MSIM, together with its advisory affiliates, employs more than 1,300 professionals and manages $1.7 trillion in assets as of 30 June 2025. It delivers long‑term performance, service and a broad suite of solutions to governments, institutions, corporations and individuals.
**About Morgan Stanley**
Morgan Stanley (NYSE: MS) is a leading global financial services firm offering investment banking, securities, wealth management and investment management. With offices in over 42 countries, it serves corporations, governments, institutions and individuals worldwide. For more information, visit www.morganstanley.com.
