E. Davisson Hardman, a senior member of Morgan's real estate investment team with 25 years of experience, will run the expanded US business. "The combination of Lend Lease's US REI business and Morgan Stanley will create unique real estate capabilities," he says.

Morgan Stanley Australia CEO Steve Harker adds, "This transaction significantly enhances our product capability and presence in Australia, and we are committed to building the Trust's market position and performance."

Prior to the announcement, representatives of the Trustee and Morgan Stanley met to review how the Trust would be operated under Morgan Stanley's ownership of the Trustee. Commenting on these discussions, Ian Smith, fund manager and director says, "We believe the transaction will be beneficial to Unitholders as the Trust is integrated into Morgan Stanley's worldwide management platform and gains the benefit of Morgan Stanley's extensive network."

The agreement between Lend Lease Corporation and Morgan Stanley remains subject to certain closing conditions. In the interim, Lend Lease remains the ultimate owner of the Trustee.

Lend Lease's Clarke says the agreement allows Lend Lease to exit the majority of the US equity advisory business in accordance with the strategy announced in late May. "Importantly the transaction allows us to minimize any further exposure to this business." The financial outcome of the transaction was within Lend Lease's expectations, which were reflected in the recently announced write-down of Lend Lease's Real Estate Investments businesses. In the event that the transaction is not completed, the write-downs previously announced allow for any additional costs that may be required to pursue further options in relation to these businesses.

Lend Lease will now focus on developing businesses including Asia Pacific, Bovis Lend Lease and Actus Lend Lease. The company noted this sale will allow it to focus on its core businesses, which include developing and investing in Australian properties.