Forced sales on the way, BCO delegates hear

The number of forced sales of distressed properties will definitely increase in the foreseeable future, according to John Plender, CEO of UK-based real estate company Quintain. 'The banks have been playing carefully, they don't want to dump properties on the market. But it's impossible to stop.'

Some banks have been selling off assets between themselves, noted Noel Manns, principal of Europa Capital northern Europe. 'We haven't seen many so far, but I think it will happen,' added Ian Coull, CEO of logistics property company Segro.

The three property chiefs were speaking on a panel entitled 'Hard crunch or soft landing' during the annual conference of the British Council of Offices in Brussels last week. Manns said there was not much positive news at present for the property market, noting that capital values would fall further and that the sale-and-leaseback market had 'seized up'. But rising inflation was underpinning the market, he added. 'This means that replacement costs are rising too. And the German funds are back. They have seen a net inflow of EUR 6bn.'