Morgan Stanley: Look to property derivatives


Morgan Stanley has recommended investors look to property derivatives, the Gulf Times has reported.

At a seminar for international investors, organised by Qatar’s Commercialbank, Benoit Pinguet, vice president of property derivatives, described them as "an alternate to investing in physical real estate".

He said: "Property derivatives provide shorting to investors allowing them to gain from the decline in price of properties, which is impossible with physical investment."

Morgan Stanley has claimed they will outpace physical markets, particularly in the UK in 2008, the paper reported.

Mr Pinguet claimed they provide "a very efficient way to take investment bets in real estate as they reduce the cost associated with direct investment in (or divestment of) physical property".

Commercial property in London has attracted a number of overseas investors. Its lowered prices and the capital’s reputation as an international business centre have helped maintain business interest.