Morgan Stanley's real estate unit has acquired a 3 per cent stake, worth about $1.4bn, in Mitsubishi Estate, Japan's second-largest real estate group and an owner of prime assets in Tokyo's Marunouchi business district.

The move by Morgan Stanley, which has been one of the most active investors in Japanese real estate over the past decade, highlights strong foreign interest in property companies seen as holding under-utilised but attractive assets.