Land Securities has reduced the price of its stake in the Bullring by £30m confirming the continued decline in the value of commercial property.

LandSecs put the stake on the market in March for £300m. The final sale price of the Birmingham shopping centre will be viewed as a barometer of the state of the British commercial property market.

A source close to Land Securities said: 'The quoting price was at 2007 values, and that has since slipped by 5-10%. However, that's OK, given the decline in the property market.'

It is hoped that a deal will be struck by next month. Land Securities has run the auction as an invited competition, but the source said the bidders could be 'counted on one hand", describing them as "overseas money and a bit of old-school money'.

The Observer