Capital & Regional expects to see 'increased stress' among its retail and leisure tenants as the economy contracts and consumer spending drops sharply.

The owner of shopping centres and leisure parks across the country also said it had seen tenants in 10 of its properties become insolvent since the end of the third quarter and that it had more than doubled provisions for tenant defaults to £1.5 million.

Hugh Scott-Barrett, chief executive of Capital & Regional, said there was increasing evidence of recession in the UK economy and that he expected the very challenging investment market conditions to persist well into 2009.

The Times