Global financial services firm Morgan Stanley will close its property investment business in South Korea before the year ends in order to focus more on other Asian markets, according to several sources.
The sources said that after investing in the property market for over 10 years, Morgan Stanley Real Estate Investing would shut down its Korean operations.
According to some analysts, the move of Morgan Stanley underscored the difficulties for foreign property companies in the market, as most of the transactions were dominated by local players.
“It’s been a tough market. There hasn’t been much international capital in real estate," said one of the sources.
A spokesperson from Morgan Stanley has confirmed that it is restructuring its property investment operations in Korea.
The company’s property investment business still has several office buildings in Korea, and is not rushing to sell them all, said the sources.