Morgan Stanley approves of HMC Capital's acquisition of commercial real estate private debt fund manager, Payton Capital. The target has $1.5bn of assets under management (AUM) and a $500m approved financing line to help warehouse products.

The broker believes HMC Capital's target of around $5bn credit AUM in the near-term is achieveable, with success ultimately dependent on flow/capital churn.

The Equal Weight rating and $7.05 target are maintained. Industry View: In-Line. 

Sector: Real Estate.

Target price is $7.05.Current Price is $6.92. Difference: $0.13 - (brackets indicate current price is over target). If HMC meets the Morgan Stanley target it will return approximately 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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