Canary Wharf owner cagey on debt burden as values dive

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The company insisted it was still meeting the terms of its £880 million loan from Citigroup but admitted "there is a material risk" it will breach them "within the next 12 months".

Songbird shares dived 6¼p or 19% to 27p.

Falling property values have pushed Songbird ever closer to its loan-to-value covenants. The estate has lost 26.5% of its value in the past 12 months, sinking from £6.8 billion in December 2007 to £4.9 billion at the end of 2008.

The biggest casualty was the home of Lehman Brothers, whose value has more than halved since the bank collapsed last September.

The 25-30 Bank Street building was worth just £410 million at its December 2008 valuation, down from £855 million in June and £955 million at the end of 2007.

Songbird racked up losses of £1.8 billion last year against profits of £182 million a year earlier. Its net asset value per share dived 70%.