Jingle Mail: Morgan Stanley Failed to Make $3.3 Billion Debt Payment by Friday Deadline, Handed Over Keys to Central Tokyo Office Building to Blackstone; Largest Ever Repayment Failure of Its Kind in Japan
April 17th, 2011Via: Reuters:
A Morgan Stanley property fund failed to make $3.3 billion in debt payments by a deadline on Friday, handing over the keys to a central Tokyo office building to Blackstone (BX.N) and other investors, the largest repayment failure of its kind in Japan.
It marks the latest fallout from a series of highly leveraged investments by Morgan Stanley (MS.N), one of the most aggressive investors in worldwide property markets before the global financial crisis.
The $4.2 billion MSREF V real estate fund missed its April 15 deadline to repay 278 billion yen($3.3 billion) worth of debt packaged in commercial mortgage-backed securities on the 32-storey Shinagawa Grand Central Tower, a property which has seen its value plunge, two people involved in the transaction said.
They spoke on condition of anonymity due to the sensitive nature of the matter.
A Morgan Stanley spokeswoman in Tokyo declined to comment. A New York based spokesman for Blackstone, which holds the most junior portion of the debt and gains the right to market the building for seven months, was not immediately available for comment.
This is the largest repayment failure of debt packaged in CMBS in Japan, according to analysts and industry experts, bigger than the 112 billion yen that real estate investor K.K. daVinci Holdings failed to pay on the Pacific Century Place office building.
Sure they gave it up. It’s worth even less, now that Tokyo is in danger of being contaminated with radioactivity. There hasn’t been a mass exodus/abandonment of a major metropolis for centuries. We may witness it soon in Tokyo.
My read on this is that these nut jobs aren’t going to give another dime to anything they have in Japan. I can’t write enough curse words here to say that Morgan Stanley just destroyed their credibility. Jumping Japan (cause you know all that nuke shit while Japan is on the end of a rope?) is probably the most unethical, unhuman-friendly a move a corporation could make.
Morgan Stanley, yeah you dudes. I didn’t have a choice when you were bailed out by my tax dollars. But I’ll tell this. You are ignoramouses to do this to Japan. MORONS to the 9th degree. Yes, LETS JUST ADD SOMEMORE STRESS TO THE JAPANESE. AFER ALL IT;S JUST A DAY ON WALL STREET!
I think you will be so sorry, FOR BEING SUCH TWITS. But I’m not your psychologist or therapist.
Morgan Stanley, you are just one of the many banking institutions of the world that individually and collectively needs to go through a MAJOR DETOX program in your investment strategy.
Your strategy sucks when you fLuck with people who are going through a nuclear disaster. Guess you are trying to profit off of that?
When people make decisions like this one re Japan when that nation is under such trauma I question their HUMANITY. Think I trust someone with my money when they are willing to flip on dime when the shit hits the fan?
Morgan Stanley. YOU HAVE NO SHAME. YOU DON”T CARE ABOUT PEOPLE AND THAT IS WHY YOU WILL FAIL.
Good FLUCK you bastards.
As an afterthought, is Morgan Stanley already bankrupt,couldn’t make the payment, and is using the nuclear catastrophe as an excuse not to make their payment?
an expanded version of that Reuters article is the only thing on Googole news in Japanese about this. the Japanese article also mentions that a similar fund, MSREF VI, is also looking due for some big repayments soon.
at least commercial real estate meltdowns don’t contaminate the global food chain for the next 100,000 years.