After weeks of speculation, Morgan Stanley has agreed to buy most of Lend Lease’s U.S real estate investment arm. The purchase will bring Morgan Stanley’s real estate assets to $30 billion once the deal is finalized.

In addition, Holliday Fenoglio Fowler, once of the nation’s largest commercial real estate capital intermediaries, has completed a management buy-out from Lend Lease. The price of the transaction, like the Morgan Stanley purchase, was not disclosed. As far as the equity ownership of the new firm is concerned, it will be held exclusively by an investor group of current HFF associates.

"Although there will be many challenges as we move ahead, we have been working hard to plan for this opportunity and we are excited about what the coming months will bring," says John Pelusi, a HFF managing member based in Pittsburgh.

Lend Lease will retain control over both Rosen Consulting Group and Lend Lease Rosen Real Estate Securities, but a review of these businesses is planned in the future. Australia-based Lend Lease has said that the sell-off of its various U.S divisions will allow Lend Lease to focus on its core business in Australia.