Capital & Regional said its The Mall shopping centre portfolio, which includes assets in Blackburn and Preston, has dropped sharply in value and seen dozens of tenants become insolvent.
Hugh Scott-Barrett, chief executive, said the 8.7% drop in value in October "was in large part due to alignment by the valuers with transactional evidence in the market".
In today's interim management statement, Scott-Barrett said the financial position of the Mall was "strong". He added that The Mall saw tenants in 76 units with a total passing rent of £6.5m become insolvent in the first three quarters of 2008 out of a total of 2,200 units.
Scott-Barrett added: "There is increasing evidence of recession in the UK economy although the impact on our business at this time is mixed. In October the Mall saw footfall fall 1.7% compared to October 2007, although this was better than the national index which decreased by 2.3% in the month."
Earlier this year, C&R sold The Mall in Chester to Carlyle along with two other centres for a total of £286m. Further asset disposals are likely, the company said.