Morgan Stanley (MS)’s P2 Value fund sold its majority stake in the Frankfurt Trianon office and residential complex as part of a plan to shut down the fund and dispose of its assets.
P2 sold its 57 percent stake in the development to a unit of Madison International Realty and Art-Invest Real Estate for an undisclosed price, New-York based Madison said today in a statement.
The complex in Frankfurt’s financial district includes a 47-story office tower and residential buildings and is 85 percent occupied, according to the statement. Morgan Stanley’s Eurozone Office Fund owns the rest of the Trianon.
In October 2010, Morgan Stanley said it would shut down the P2 fund and sell its 34 properties in Europe, Japan, Hong Kong and the U.S. within three years. The New York-based bank closed the fund after it failed to raise enough from asset sales to repay investors before a redemption deadline.
“Structural changes, such as currently experienced by open-end real estate funds, as an example, offer interesting investment opportunities to Madison,” Michael Seifert, managing director at Madison’s German unit, said in the statement.