Crunch takes £316m off Liberty portfolio's value

The decline in the group's portfolio value follows the crisis in Britain's property industry as credit has dried up for buyers, and worries abound about falling prices.

Chief executive David Fischel said the bulk of the decline in value, measured against the previous year, came in December as the credit crunch took hold.

"The market peaked at the end of June. By September, everyone wondered what was going on, then in December there were big writedowns," he said.

British Land last week wrote down the value of its offices, shops and retail sheds by £1.4 billion.

Although Liberty's writedown seems huge, Fischel said that, in percentage terms (3.5% of the group's £8.63 billion portfolio), it was far less than the industry average decline of 10%.

"As far as we can see, our shopping centres, which are at the top end of the market, are still doing well. We are more than 97% occupied and are perfectly positive about life," he said.

Liberty is working on plans to revamp Covent Garden market with improved lighting, signage and a change in the mix of tenants. It is also working on bigger projects in Cardiff and Newcastle. Underlying profits before tax in the year to 31 December were £129 million, up 6% on a year ago.

Meanwhile, it emerged today that London office rents were the most expensive in the world in 2007 and are now triple the average paid by businesses in New York's Midtown theatre district, to where banks in the city are increasingly moving.