Capital & Regional, the co-investment retail and leisure property fund manager, suffered a weak November in its three funds.

The value of the properties in the Mall shopping centre, Junction retail warehouse and X-Leisure funds fell by 5.2%, 6.7% and 4.2% respectively in the one month on a weighted average basis.

These latest valuation falls put further pressure on the Junction and X-Leisure funds, whose loan-to-value ratios are in danger of breaching their covenants.

They follow valuation falls in October of 8.7% in the Mall, 3.6% in the Junction and 3.8% in X-Leisure.

Chief executive Hugh Scott-Barrett said last month the focus of the company ‘continues to be ensuring that we have a stable financial structure going forward’.

He said that, while the financial position of the Mall was ‘strong’, the Junction and X-Leisure needed restructuring.

He warned that the Junction fund might need restructuring. X-Leisure had a loan-to-value ratio of 67% at the end of October against a covenant of 70%.

It had an agreement in principle from its banks to add a Norwich property to the security pool, which would reduce the loan-to-value to 62%.