The problems associated with rising debt levels in Western economies are creating great uncertainty in equity and debt markets across the world. The short and long term ramifications of measures that may be necessary to restore economic stability are at present unclear but may result in a sustained contraction of credit available for businesses generally. As described opposite, such conditions could have an impact on the valuation of our assets and the prosperity of our locations.

Following the completion of the St Martin’s Courtyard project in the Longmartin joint venture, the Group’s exposure to risks associated with the speculative nature of its routine schemes is no longer considered to be material in relation to our income and resources.

Our principal risks relate to the valuation risk inherent in property investment, the concentrated location of the Group’s portfolio and certain aspects of its strategy.