Morgan Stanley is selling its stake in the Investa platform, being the management of the listed Investa Office Fund (IOF) and the unlisted Investa Commercial Property Fund (ICPF), which is valued at $9.6 billion. Morgan Stanley is also divesting its direct 8.8 per cent stake in IOF.

CLSA's Michael Scott has named six potential buyers on the shortlist as follows, and in no particular order: Blackstone, potentially in partnership with Mirvac; DEXUS in partnership with Abu Dhabi Investment  Authority; China Investment Corporation; a Lasalle investment consortium, Brookfield and Cromwell Property Group with the backing of Redefine Properties.

It was said that number could be cut in half later in the week, with DEXUS/Abu Dhabi consortium, a front runner, although the final deal is not expected to be inked for another two months.

"The outcome will materially impact the AREIT office sector landscape with IOF the only major pure office play," Mr Scott said.

"It is important the 'right buyer' is found, one that has the support of IOF and ICPF investors. They are there because they have chosen the current management team. They also have to the power to vote out any new manager."

Mr Scott said IOF's management have reiterated that Morgan Stanley will be giving them another opportunity to discuss internalisation, which would be well received by the market.

The Investa Land component with its $3 billion end value will probably be sold separately to a residential specialist group.

The Investa transaction is also expected to lead to some sales. The portfolio includes "jewels" such as 126 Phillip Street in Sydney, 60 Martin Place, due to be redeveloped, 400 George Street and a half share in 175 King Street, among others.

Of course, some have pre-emptive ownership clauses and other co-investors, so any sales will be complicated.