MORGAN STANLEY COMPLETES PURCHASE OF CHEVRON REAL ESTATE ASSETS

NEW YORK, May 24 /PRNewswire/ -- The Morgan Stanley Real Estate FundII, L.P. (MSREF II) announced that it has completed the acquisition of a$105 million portfolio of properties owned and developed by Chevron Landand Development. The sale includes 550 acres of land and 1.25 millionsquare feet of improved commercial property, all located in California.

MSREF II will own a 1.25 million square feet improved property portfolio which includes Park Plaza, a 300,000 square foot office complex in Orange County, and the Ontario Hilton, a 300-room hotel located near the Ontario Airport in San Bernardino County. MSREF II is also acquiring ten land parcels including a 55-acre bio-tech business park in Torrey Pines, Calif., 80 acres of mixed use property in Huntington Beach, Calif. and a 100 acre business park in Bakersfield, Calif.

Jeff Dritley, Director of MSREF II for the western United States, commented: "MSREF II plans to sell most of the properties over the next several years, although some of the land will provide longer term development opportunities."

MSREF II, a discretionary real estate investment fund whose sole general partner and manager is an affiliate of Morgan Stanley Group Inc., has over $1 billion in total committed capital from domestic and international financial institutions, pension funds and other investors, including Morgan Stanley.



MSREF II is the second real estate fund sponsored by Morgan Stanley. MSREF I, created in 1991, completed 22 investments involving $2.85 billion in real estate assets located throughout http://www.century21.com/property-search the United States and in the United http://dre.ca.gov/ Kingdom. MSREF I's investments included the purchase of Red Roof Inns of Columbus, Ohio, $1.4 billion (book value) of loans and foreclosed property from Bank of America, and several additional acquisitions of assets from financial institutions in partnership with Lennar Corp.

MSREF II, which initiated its investment activity in January 1995, has already completed several major investments involving nearly $1 billion in real estate assets, including the purchase of a majority, controlling interest in CenterAmerica Property Trust of Houston, Texas, and the purchase of Homart's office division from Sears Roebuck in partnership with Hines Interests Limited Partnership.

MSREF II focuses on large, complex transactions in conjunction with value-added partners leveraging from Morgan Stanley's relationships worldwide. Specifically, MSREF II is pursuing investments in private real estate operating companies, portfolios of real estate and/or sub- performing loans, homebuilding and residential land, corporate-owned real estate and major real estate restructurings. Further, MSREF II can invest 25 percent of its capital outside the United States and is currently actively reviewing opportunities in Canada, Western Europe, Latin America and Asia.

Morgan Stanley Group (NYSE: MS) is a global financial services firm with offices in New York, London, Tokyo, and other principal financial centers around the web world.

-0- 5/24/96

/CONTACT: Jeffrey A. Dritley, 310-203-9690, for Morgan Stanley Real Estate Fund II, L.P./

(MS)

CO: Morgan Stanley Real Estate Fund II, L.P.;



Chevron Land and Development ST: New York, California IN: FIN SU: TNM

PS -- NYF020 -- 0062 05/24/96 08:53 EDT

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