Leading Investment Banking firm demonstrates that walking away makes sense!
The value of Tokyo’s properties has fallen well below that of the debt, analysts and sources said, raising the prospect that the funds will fail to repay or refinance the loans and hand control of the buildings over to lenders. Indeed, radiation levels in Tokyo are feared as to be serious enough that authorities are mulling a move to establish a new capital away from Tokyo. Blackstone left holding bag.
Morgan Stanley Defaulted on a Loan and Walked away from Offices in Tokyo!! Gave the keys back! Biggest Default in Japan’s History 3.3 Billion!
Morgan Stanley fund fails to repay debt on Tokyo property
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. This is the largest repayment failure of debt packaged in CMBS in Japan’s history.