BERLIN-The German real estate management unit of US investment bank Morgan Stanley is preparing to reopen its P2 Value property open-end fund at the start of November - after a 23% write-down in the value of its portfolio.

P2 Value, as many others too, has been closed since autumn 2008 but, unlike several property open-fund peers, has made no attempt to re-open in the interim. The original closure came in the aftermath of the Lehman Brothers collapse with a run on redemptions mainly, but not only, from larger wholesale investors. Small investors were also panicked to move savings into bank savings accounts by a government announcement these would be guaranteed.

Morgan Stanley expects a third-party value assessment at re-opening of $1 billion to $1.1 billion, compared with the current net asset value of $1.2 billion. This is based on devaluations, risk reserve additions in individual cases, and potential losses on short-term asset sales to raise liquidity. In addition it will make reserve and risk allocations of $27 million so that the certificate price will fall 18% from end-August to $39.01 at re-opening.