British Land (BL) will hold off on its development plans of the ‘Cheese Grater’, a new skyscraper in the City.
BL said it would review the development’s timings and maintained its first-quarter results demonstrated its "resilience in the face of a weak economy and gloomy market sentiment".
Chairman Chris Gibson-Smith said: "While values are marked down in a thin market, our prime assets buildings and customer contracts provide strength in difficult times and opportunity when the cycle turns."
The value of its portfolio has fallen five per cent and its net assets have dropped by £6.3 billion on the quarter.
Despite this, it posted a £74 million profit and maintains conditions will improve as the year unfolds.
"As spring follows winter, so too will property markets, in due course, see better times again," said chief executive Steven Hester.
Should the Cheese Grater go ahead it will top 225 metres and join a new generation of commercial property buildings now filling the capital’s skyline.