True, the big Reits, institutions and property funds have all been net sellers for the past 18 months, shedding assets to satisfy redemption demands, or inject equity into loan-to-value covenants secured on their property portfolios. Now, it is generally considered the big beasts have sold enough property to attain stability. Indeed, many of them are now preparing to buy assets again.
Considering the extent of the valuation slump, readers may be surprised that so few property companies have actually gone to the wall. There have been a few memorable names, such as Dawnay Day, and Simon Halabi's Protractor Portfolio which have collapsed under mountains of debt. But we have seen nothing like the carnage witnessed in previous property crashes in the 1970s and 1990s.