Toru Bando Takes Over at Morgan Stanley Real Estate

Morgan Stanley has promoted Toru Bando to the top spot for its Asia real estate operations, as the US financial giant prepares for renewed growth in the region.

The move up for the 15-year Morgan Stanley veteran comes at a time when many fund investors are taking greater interest in the Japanese property market.

Bando Moves Up as Slaughter Heads Home

Bando’s promotion to Head of Asia for Morgan Stanley Real Estate comes as JE Hoke Slaughter prepares to return to the US after six years running the investment firm’s property operations from Hong Kong. According to an internal memo seen by Mingtiandi, Slaughter will continue to serve with Morgan Stanley in the US, with a focus on expanding the company’s core investments internationally.

Bando’s will take over the reins effective June 30, and will continue to be based in Tokyo. The succession comes just seven months after Bando became Head of Acquisitions for Asia with Morgan Stanley Real Estate last year, and some four years after he was appointed Head of Japan.

In an unrelated change, Morgan Stanley is said by sources familiar with the company’s private equity business to be in the process of renaming all of its closed-end private equity funds globally. The company’s PE funds will take on the name North Haven going forward, with the investment vehicles dropping the Morgan Stanley brand in order to comply with new guidelines under the US’ Volcker Rule.

Japan Regaining Traction as an Asian Attraction

The promotion of Morgan Stanley’s head of Japan to run its overall Asia real estate operations is being interpreted by some observers as an acknowledgement of the growth potential of the Japan market, as well as dimming enthusiasm for the mainland market, which continues to work its way through a downturn.

Morgan Stanley is said to have reduced the size of its real estate operations in Hong Kong and Shanghai in recent months, although the firm has not commented on this publicly.

A recent study by a trio of non-profits tracking the performance of real estate investment funds in Asia Pacific found that the quarter on quarter growth rate of Japanese funds in the fourth quarter of 2014 was the best in Asia.

According to the fund index produced by the Asian and European Associations for Investors in Non-listed Real Estate Vehicles (ANREV and INREV) and the National Council of Real Estate Investment Fiduciaries (NCREIF), the average growth rate of Japanese funds was 7.9 percent, far outpacing Chinese funds, which grew at 3.8 percent, and Australian funds, which increased by 2.8 percent.