Chinese sovereign wealth fund, China Investment Corporation (CIC), has partnered with Blackstone to buy a Japanese property loan portfolio from Morgan Stanley, Financial Times reports. The portfolio, which had a face value of $1.1 billion, was bought at a discount.

CIC and Blackstone paid about 35 cents on the dollar for the portfolio, which includes current and non-performing loans. CIC previously acquired a 9.9% stake in Morgan Stanley for $5.6 billion at the end of 2007.

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