The acquisition from Liberty International has triggeredspeculation in the city that the Americans may bid for the whole ofGPE. Such a move would add a significant stake in central Londonoffices and retail to their dominance of the Docklands market. Buteven without a full bid the stake significantly strengthens MorganStanley's presence in the UK real estate sector.

In recent years GPE has streamlined its portfolio, valued ateuro 1 billion ($1.34 billion) earlier this year, so the focus isprimarily in central London particularly the West End. Roughly 80%of the portfolio, or euro 851.54 million ($1.1 billion), is inoffices with the remainder in retail.

Last November Toby Courtauld, Great Portland's chief executive,announced the company had switched strategy from selling buildingsand paying off debt to buying more office and retail property inLondon.