Blackstone May Buy Japanese Real Estate Loans From Morgan Stanley

US investment giant Blackstone Group is close to finalizing a deal to purchase real estate loans with a face value of around 100 billion yen ($1.1 billion) owned by Morgan Stanley's Japanese operations, according to Nikkei. The proposed deal involves non-recourse loans, backed by commercial real estate such as office buildings which are believed to comprise around 30 properties in the Tokyo area. Morgan Stanley started Japanese commercial lending around 2000, securitizing loans for sale to domestic and overseas investors. But the recent financial environment makes it impossible for Morgan to securitize the loans it owns. The world's biggest private-equity firm appears to be ramping up its investment in Japan on the belief that real estate prices are close to finding a bottom.