Workspace, the business space provider to 4,500 small businesses in London, has posted a £128.5m loss after the value of its property portfolio fell 12.3%.

The company's loss, which compares to a profit of £19.9m in 2007, was driven by writedowns of £131.2m as the slump in the commercial property market pushed values steeply down. The fall in valuation comes days after the latest IPD figures showed capital values fell 4.3% in October, the largest fall in the survey's 22-year history.

Daily Telegraph