Quintain suffered a 28% plunge in its net asset value in the six months to 30 September, putting it in increasing danger of breaching its banking covenant.

The listed developer, investor and fund manager headed by Adrian Wyatt, today reported a drop in its adjusted, diluted NAV from 676p to 485p a share at the half-year stage.

The fall was largely caused by a 20% drop in the value of the company’s directly-held properties to £869m. The major London regeneration projects, Wembley and Greenwich, have dropped by 30% in value since 30 September.

In the half year the value of Wembley was written down by £131m to £532m, while Greenwich dropped by £50m to £222m.

The valuation falls increased Quintain’s gearing from 60% to 90% in the six months. This compares with its banking covenant of 110%, which implies headroom in terms of £127m.

‘To avoid a breach mitigating action includes a programme of disposals to reduce debt, active management of assets to minimise falls in valuation and dialogue with key stakeholders as to additional courses of action,’ said chairman John Plender.