The financial rescue of Capital & Regional moved a step closer as the property fund manager revealed that core group banking agreements had been relaxed.

The agreement follows a number of equity raising moves to address the strained debt position at a fund and group level, which the company said had secured almost £800m to date.

This has included a rights issue at the Mall fund in June and a half sale of German properties to Apollo Real Estate Advisors earlier this month.

Capital & Regiona unveiled half-year post-tax losses of £201m and also reported a 20% fall in the value of its properties under management to £5.3bn as its assets struggled to hold their value amid the depressed property market in Britain.

The shares closed up 26.5p at 180.5p.

Financial Times, The Times, Daily Telegraph