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Morgan Stanley Real Estate Investment Fund Losses

Zamansky LLC has launched an investigation into losses stemming from Morgan Stanley’s multi-billion dollar real estate investment funds.  One fund, labeled MSREF VI, reportedly lost $5.4 billion; nearly two-thirds of the fund’s entire assets.  Beginning in 1991, Morgan Stanley formed various real estate funds including MSREF I, MSREF II, MSREF III Domestic, MSREF IV and MSREF V and more recently, they have attempted to raise money for a seventh fund, known as MSREF VII.

Among the claims Zamansky LLC is investigating is whether Morgan Stanley misled investors about the strategy of its real estate funds, the value of its holdings and the  value of their investment prior to Morgan Stanley’s recent announcement of staggering losses.

Morgan Stanley also reportedly paid itself hefty fees including $104 million in “transaction fees,” $22 million in “fund-management fees,” $13 million in “financing fees,” $36 million in “real-estate management fees,” and $21 million in “financial advisory fees.”  Zamansky LLC is examining whether these fees were appropriate and if they should be returned to investors.

Investors who suffered losses related to Morgan Stanley’s real estate investment funds are urged to contact Zamansky LLC.