Rubicon Europe Trust Group says its real estate portfolio has lost 13.7% in value and expects to make a net loss of $700m in fiscal year 2008.

The property trust is part of the defunct Allco Finance Group.

Aanother Allco trust, Rubicon America, said it expects a net loss of $320m for the year to 31 December 2008, after portfolio devaluations.

Rubicon Europe said the current problems with global credit markets had dragged down the values of its real estate assets.

The Age