Mumbai: Morgan Stanley has agreed to acquire Investa Property Group, Australia''s biggest commercial property owner, capping $12.5 billion of real estate investments this month, spread across three continents.

The A$4.7 billion ($3.9 billion) cash offer values Investa shares at A$3.08 each, 14 per cent more than its May 30 closing price, Sydney-based Investa said in a statement.

Investa owns property in Australia''s three largest cities and offices that Morgan Stanley bought in cities, including Berlin, Frankfurt, Dallas and Las Vegas in the past two weeks.

Investa''s earnings from property investments more than doubled in the second half of 2006 spurred by demand for office space in Sydney.

Investa''s Sydney properties include the Norman Foster-designed building at 126 Phillip Street, where Qantas Airways Ltd. and Deutsche Bank AG''s Australian unit have their headquarters. Sydney office rents are forecast to rise 10 per cent annually during the next three years.

It also owns 120 Collins Street in Melbourne, where Citigroup Inc.''s local subsidiary has offices. In Melbourne, rents are expected grow 6 per cent

Morgan Stanley, the world''s second-largest securities firm, also has accumulated a 3.4 per cent stake in Mitsubishi Estate Co. Japan''s biggest developer. The stake is worth about 173.3 billion yen ($1.4 billion), based on current share price.

The company also won the bidding for All Nippon Airways Co.''s 13 Japanese hotels last month, agreeing to pay 281.3 billion yen in that country''s largest real estate acquisition. Morgan Stanley also completed in April its $6.6 billion acquisition of CNL Hotels & Resorts Inc.

The bid for Investa has, however, to be cleared by an independent expert, confirming the offer is in the best interests of shareholders. The offer, which values Investa at A$6.6 billion including debt, also needs to be approved by 75 per cent of the stock voted at a shareholder meeting expected to be held in August.