The recent increase in oil prices could provide a boost to London's prime office real estate market, according to Morgan Stanley.
According to their analysis, higher oil prices tend to correlate with increased demand for top-tier commercial properties.
When oil prices rise above this threshold, the excess profits are invested by its sovereign wealth fund, PIF, in assets around the world, including tech stocks.
Morgan Stanley says that in the past, a similar rise in oil prices has preceded strong 12-month share price performance for London office REITs (real estate investment trusts).
For Derwent London, Morgan Stanley forecasts the stock reaching £27.00 ($33.43), up 45% from current levels, within 12 months.
Persons:
Morgan Stanley, Bart Gysens
Organizations:
Bank of London, Cooperation Council, Monetary Fund, GCC, Saudi, London, Derwent, Great Portland Estates, Derwent London, Great
Locations:
London, WTI, Great Portland