Commercial property is yet to reach 'the point of maximum pessimism' amid widespread fears of heavy price falls next year, according to one fund manager. Financial Times

Chris Turner, head of property at Thames River, warned: 'We are increasingly vulnerable to alarm and despondency' as the group revealed a slump in the value of its flagship real estate fund.

TR Property Investment Trust announced a fall in net asset value per share of 19.6 per cent from 291p to 234p between March 31 and September 30.

The fund’s assets dropped from £1.08bn to £642m, although this was partly due to the separation in July of 19% of the shares into a new class called Sigma, which will be repositioned towards stocks in mainland Europe.

Sigma’s NAV per share fell from 122.9p to 114p from July 24 to September 30. TR has taken the full brunt of tumbling share prices in the sector since the start of the year. The fund is invested mainly in property stocks, although it also owns some direct real estate.

Shares in the vehicle closed 7.75p lower at 169.25p, down more than 30% over the past year.