REITs and leasing companies are expected to clash in 2010 as a large number of businesses, mostly developers as well as retailers, are looking for liquidity.

Sale & leaseback in the past years has played a crucial part in the activities of many local retailers and developers, in many cases substituting lending to a large extend. Since 2002, the leasing departments of all major banks were willing to accept rents stemming from as a solid tenant as collateral. Another benefit of this type of lending is that it has no effect on the borrower's balance sheet.

But banks are now much more cautious when it comes to tenants, due to the effects of the crisis, interest rates have recorded a small increase and the current state of the market in general benefits REITs over leasing because:

• REITs as an institution is constantly reinforced by new companies with increased capitalization, which will bring the number of REITs listed in the Athens Exchange to five by the end of 2010.

• All the distressed properties that will be disposed by banks could be bought at market value by the REITs owned by banks.

• Banking customers could bring their properties into the REITs and secure funding while at the same time make a sale back deal on a specified timeframe and have the additional advantage that if they choose to become shareholders as well, they could benefit from the high dividends guaranteed by REITs.