<div> </div><div>The global real estate fund of Morgan Stanley is in talks with the Wadhwa Group to invest 9 billion to 10 billion rupees in an office development in Mumbai, three sources familiar with the matter told Reuters.</div><div> </div><div>Morgan Stanley Real Estate Investing (MSREI) plans to invest in jointly developing 1.6 million square feet of office space in Bandra Kurla Complex, a financial district in Mumbai, said two of the sources on condition of anonymity as the deal is not yet final.</div><div> </div><div>Mumbai-based Wadhwa Group has already begun construction on the project, ONE BKC, which will consist of two office towers and is due to be completed by 2014.</div><div> </div><div>If the deal is concluded it would be the first investment by MSREI in an office development in India, said one source.</div><div> </div><div>MSREI has invested about $850 million in Indian real estate, mainly in residential projects, including $100 million to $125 million in a housing project by Mumbai-based Sheth Developers, Reuters reported in December 2011.</div><div> </div><div>MSREI and the Wadhwa Group declined to comment.</div><div> </div><div>Private equity investors have been cautious about the Indian real estate market, investing $1.95 billion in 2012 compared with $9.8 billion in 2007, according to data from research firm Venture Intelligence.</div><div> </div><div>On Thursday, Reuters reported that US private-equity firm Blackstone Group, along with two other companies, agreed to buy a business park in Bangalore for $367 million, citing two sources with direct knowledge of the matter.<br /><br />(Reuters)</div>
