* Deal releases Morgan Stanley from liability
* John Goff will manage Crescent in joint venture
NEW YORK Nov 20 Morgan Stanley (MS.N) has
handed off its Crescent real estate subsidiary to Barclays
Capital [BARCBC.UL], the companies said on Friday.
A Morgan Stanley spokeswoman said the New York bank agreed
to transfer the subsidiary to Barclays in exchange for a "full
release" of liability on the loans relating to Crescent.
Crescent is a real estate investment company that operates
office space, residential developments and luxury hotels.
Morgan Stanley acquired Crescent for $6.5 billion in August
2007, including debt. The bank had planned to put Crescent's
assets into real estate investment funds, but markets soon
seized up and Morgan was left holding these assets.
Barclays, which had provided a $2 billion loan to help
finance the Crescent deal in 2007, said it acquired the
subsidiary in a joint venture with Goff Capital Inc.
Barclays said John Goff, the founder of Goff Capital
Partners, a real estate investment firm, would be chairman and
chief executive officer of Crescent.
Goff previously led Crescent before its sale to Morgan
Stanley in 2007. He co-founded Crescent Real Estate Equities in
the early 1990s, leading the company through its initial public
offering in 1994.
(Reporting by Steve Eder; Editing by Tim Dobbyn)