St Modwen, the developer that owns the Elephant & Castle shopping centre, today warned it has seen no pick-up in the London retail market as its losses more than quadrupled.

“Most of our activities in London are in retail and those are the most challenging at the moment. No one wants to invest and occupiers are demanding price cuts,” said chief executive Bill Oliver. “I think it will be 18 months before we start seeing growth again in the commercial property market.”

The regeneration specialist made a pre-tax loss of £98.3 million for the six months to the end of May, compared with £20 million last time. It has scrapped its interim dividend to conserve cash and wiped £68.6 million off the value of its portfolio. Oliver warned he expects to write down the value of the estate again in November.

But St Modwen said it is starting to see residential activity pick-up. “I wouldn't say that business is taking off, but at least people are looking,” Oliver added.

It came as Knight Frank called the bottom of the central London office leasing market. The property consultancy said demand picked up between April and June. “I do not see things getting worse than this,” said Tim Robinson, head of West End leasing.