In an interim statement released today, the developer said that it does not expect demand for retail and office space to recover until the end of next year.

Chairman John Nelson said: "The unprecedented conditions in financial markets worldwide have had a major impact on real estate markets leading to caution on the part of occupiers and a sharp decline in investment activity.

"These challenging conditions are likely to persist for some time. Nevertheless, I believe that Hammerson's strengths and its experienced management team mean that the group is in a good position to weather the current environment and benefit when conditions in real estate markets improve."