Morgan Stanley to receive up to $37M fee on Watermark-Brookfield deal

Morgan Stanley is set to earn a fee of roughly $37 million for advising Watermark Lodging Trust and providing a fairness opinion on its sale to Brookfield Asset Management Inc.

Watermark Lodging Trust, a nontraded real estate investment trust, agreed to pay Morgan Stanley $4 million upon the announcement of the merger. The remaining portion of the fee is contingent upon the closing of the transaction, according to a filing. The deal, with a transaction value of roughly $3.8 billion including the assumption of debt and preferred equity, is expected to close in the fourth quarter.

Citigroup Global Markets Inc., JPMorgan Chase & Co., Wells Fargo Securities LLC and BofA Securities Inc. were financial advisers to Brookfield Asset Management. Their advisory fees were not disclosed.