Morgan Stanley will integrate the business under the Morgan Stanley name, assuming full operational control. 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 sale was originally announced in mid-June. Lend Lease will now focus on its core businesses, investing in Australian properties and on developing businesses such Asia Pacific, Bovis Lend Lease and Actus Lend Lease.

The parts of the equity advisory business included in the transaction are all separate account mandates and commingled funds including the Prime Property Fund, but excluding the Value Enhancement Funds, Rosen Consulting Group and Lend Lease Rosen Real Estate Securities. The $2.6-billion Prime Property Fund, formed in 1973, has a geographically diversified portfolio of office buildings, shopping centers, industrial properties, apartments and hotels.