Morgan Stanley Smith Barney (NYSE: MS) is set to create a non-traded real estate investment trust aimed at securing a portfolio of high quality commercial real estate assets, according to a Form 10 document filed with the Securities and Exchange Commission.
While not the primary objective of the REIT, known as North Haven Net REIT, the Form 10 filing that was made last month indicates that the REIT could pursue senior housing assets.
“We may invest, on a selective basis, in sectors and asset classes that do not fall into the ‘Target’ buckets above, including, net-leased hotels, senior housing, residential, ground leases, entertainment, infrastructure, and other real assets that offer attractive risk-adjusted returns,” the Form 10 filing states.
These types of investment areas would be structured through net-leases with emphasis on income-to-rent coverage ratios and the “sustainability of the underlying business economics,” according to the filing.
This comes as other institutional investment heavyweights have entered the ring with a non-traded REIT, including BGO in July of last year and J.P. Morgan in November.
The filing continues on to note the primary focus on the fund will target “high quality, credit-worthy tenants whose businesses have strong outlooks and are resilient in the face of economic downturns and quality real estate properties that we believe have the potential to appreciate in value over the long-term by virtue of their sector, physical attributes and market location.”
The REIT will be managed by MSREF Real Estate Advisor Inc, a subsidiary of Morgan Stanley that operates via Morgan Stanley Real Estate Investing. As of June 2023, Morgan Stanley’s Global Real Assets platform has acquired over $200 billion in real estate assets across 39 countries, according to a DI Wire article on the filing.
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