Aussie Firm Eyes CRE Venture in U.S.

Lend Lease Corp., the Australian parent of Lend Lease US Real Estate Investments, is looking into the possibility of a joint venture with Morgan Stanley for Lend Lease US REI's equity advisory business.Lend Lease US REI manages real estate investments -- private real estate and real estate securities -- for institutional investors. Some components of the U.S. business -- including Holliday Fenoglio Fowler, a commercial mortgage brokerage, and Housing & Community Investing -- are not involved in the discussions, Lend Lease Corp. said. A spokesman for Lend Lease US REI said Lend Lease REI does not expect the current negotiations to affect the debt side of the company's business, which includes commercial mortgage lending and servicing (through CapMark Services). This is a part of the "strategic review" of its U.S. business that Lend Lease began last year, using the services of Merrill Lynch. The Australian company says it has agreed to "nonbinding, commercial terms" with Morgan Stanley and expects that there will be negotiations and due diligence regarding the formation of a joint venture with Lend Lease US REI's equity advisory business.