Segro yesterday warned of a further fall in the value of its portfolio and says the slump in the commercial property market could be even worse than research suggests.

The developer of industrial property said it was cautious about the outlook both for occupier and investment markets, anticipating weakening demand for industrial space and forecasting that values would continue to decline until debt markets stabilised.

Ian Coull, chief executive, said there would be “attractive investment opportunities in the coming years”, but added that he was managing the business in a disciplined manner. Development work has been reduced, with the company “cautious about any new speculative development starts”.

In the nine months to the end of September, Segro had net debt of £2.2bn, with cash and undrawn debt facilities of £808m.

Yesterday, Martin Allen, an analyst at Morgan Stanley, said there could be a further 42% fall in the major property stocks based on the continued absence of new debt and the prospect of banks calling in loans in default.

Financial Times, Daily Telegraph