The £977m Glanmore Property Fund is considering ‘a number of proposals’ to raise capital so that it does not breach its bank covenants.

In a Stock Exchange announcement this morning, the private investor property fund, managed by Tilney Asset Management, said that it had been in discussions with its lenders due to pressure from falling property values.

It said: ‘In light of the continuing economic circumstances adversely affecting the performance of the company, the board of directors is in discussions on plans to raise further capital for the company. The company has been holding discussions with a number of parties including its lenders and is considering a number of proposals.’

Last September, the fund asked investors to change its articles of association and extend its gearing limit from 65% to 75%.

On 5 December, the fund, which was one of the first to halt redemptions due to rapid outflows at the beginning of last year, was forced to extend its suspension of redemption for another six months to 24 June.

Data from Lipper shows that the fund delivered a return of -51.55% last year.

The fund, which had £273m of equity at 1 February, has offered 13 properties for sale at auctions this month include five bank premises and eight Iceland stores.