Falling property values knock 拢407m off value of developer's portfolio

Anglo-French office and retail property group Hammerson has reported a 拢417m pre-tax loss in the six months to 30 June 2008, following a profit of 拢368m the previous year.

The loss was driven by 拢407m devaluation in its property portfolio, which now stands at 拢7.1bn, due to the credit crunch.

Adjusted net asset value per share fell 10% from 拢15.45p to 拢13.92p.

The group, which in the UK owns the Brent Cross shopping centre and Foster-designed Bishops Square office and retail scheme in London, said it was unlikely to start new developments before summer 2009.

John Nelson, chairman of the group, said: 鈥淭he conditions in the international debt markets are the most difficult to have been experienced for many years. This has led to falls in real estate values in a number of markets and it is difficult to predict when conditions will improve.

鈥淗owever, given the strength of our business and our experienced management team, I believe we are in a good position to exploit these more difficult market conditions.鈥�

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