May 15 (Reuters) - Morgan Stanley ( MS ) has struck a

deal with an investor group to buy $700 million of property

loans tied to the failed Signature Bank ( SBNY ), Bloomberg News reported

on Wednesday, citing people familiar with the matter.

The loans were held by a cohort that included asset

management giant Blackstone, Canada Pension Plan

Investment Board (CPPIB) and investment manager Rialto Capital.

The group owns a 20% stake in a venture that holds Signature

Bank's ( SBNY ) commercial real estate loan portfolio.

Morgan Stanley ( MS ), Blackstone and CPPIB declined to comment on

the report.