The Wall Street Journal reported today that Morgan Stanley has officially given Crescent Real Estate Equities back to its lender. In May of 2007, Morgan Stanley acquired the Ft. Worth, TX-based real estate company for $6.5 billion. In the face of a $2 billion debt maturity, Morgan Stanley officially handed the keys back to Barclays Capital. The portfolio consisted of more than 17 million square feet office space, resorts and hotels.
This latest folly is only another chapter in the book of ill-fated acquisitions Morgan Stanley undertook as the market neared its peak. In September of 2006, Morgan Stanley bought a 49% interest from Duke Energy in Charlotte, NC-based Crescent Resources. According to a Duke Energy press release, this transaction placed a value of $2.1 billion on the company. Then, in June of 2009, Crescent Resources filed Chapter 11.
[...] Buckhead Plaza: Barclays Capital got this one back, following Morgan Stanley’s decision to hand the keys back on their privatization of Crescent Real Estate Equities, after they couldn’t refinance $2 [...]