SHOPPING centre owner Hammerson who part own and manage Westquay in Southampton has seen profits collapse after booking heavy losses on the value of its property portfolio.

The group, which owns the Bullring in Birmingham, said full year pre-tax profit fell 56 per cent to £322.8 million due to what it called "lower revaluation gains on the group's shopping centres and retail parks".

In the UK, its shopping centre values fell by £6 million and retail parks by £118 million, with Hammerson saying £39 million of this was due to the increase in stamp duty.

It also pointed the finger at transfer taxes in Paris and "weak trading" at its French operation.

Without taking into account the change in valuations, adjusted profit rose 9.4 per cent to £230.7 million.

Chief executive David Atkins flagged "UK retail headwinds and geopolitical uncertainty" but struck an otherwise upbeat note.

"During the year we have significantly grown and enhanced the portfolio, adding new retail space in faster-growth markets including Dublin, Leeds and Birmingham, and extending our presence in the European outlets market.

"Despite some UK retail headwinds and geopolitical uncertainty, I am confident that we have a resilient and adaptable business with multiple opportunities to drive similar levels of growth and therefore continue to deliver sector-leading income-focused returns."

The firm owns or manages 23 major shopping centres, 18 retail parks and 19 premium outlets.

Shortly after it opened Hammerson announced that they sold half a 50 per cent stake in the new extension to Westquay (then still referred to as the Watermark) to an investment firm from Singapore.

Sovereign wealth fund GIC paid £48.5m.

This looked like good business for Hammerson as it recouped more than half the £85m building costs in one go.

GIC already own half of the WestQuay shopping centre.

When full leased Watermark is due to provide an income of £5.5m and is already 95 let - just one unit remains vacant.