The global economic slump and downturn in the real estate hasn’t deterred Morgan Stanley Real Estate from going ahead with its India plan. It’s planning to invest an additional $1 billion over the next five years and has recently formed a large team for Indian operations.
These investment plans—the company had earlier invested about $750 million in the India—come despite views that India could see fewer commercial investment transactions in the near term. There is an opportunity to develop asset management expertise in real estate to help grow the property industry, said Morgan Stanley Real Estate in India interim head Sean Williams, who is also MD of Morgan Stanley Capital KK.
The company has formed a 12-member team for this purpose and has also appointed Naresh Naik to head the asset management division. “Infrastructure is key to support new residential, industrial and retail facilities. Limited institutional ownership of property means little asset management expertise exists outside of individual owner-users of property,” said Williams. “As such growth opportunities exist...but more broadly, there exists a need to develop asset management expertise to help evolve the property industry’s focus from growth to profitability,” Williams added. (Economic Times)