UK property debt fund ICG Longbow (LBOW ) has flagged a possible write-down of its remaining portfolio as ‘deteriorating property and debt market conditions’ blight its managed wind down.

The former £91m investment company, which has dwindled to £33m as a result of three years of disposals, said UK commercial property and markets had been difficult as it launched a review of its valuations. It will update these next week.

‘In light of deteriorating property and debt market conditions during the six month period to 31 July 2023, the investment manager and board are reviewing the carrying values of all remaining assets. It is expected that this exercise will be concluded shortly and further discussion and disclosures made in the interim report and accounts.’

In terms of individual loan news, Longbow said it had appointed a receiver over the property securing the £17.3m Affinity loan, which will now be re-marketed for sale.

The prospective purchaser of the £15.2m Southport loan investment in a hotel has withdrawn its conditional offer, citing challenges in meeting several conditions. The hotel has traded profitably in the year to date and the administrator has re-launched the property sale.

Administrators have been appointed across the wide borrower group structure for the £25.4m RoyaleLife Loan, and the investment manager is pursuing several concurrent strategies to protect the value of the underlying property security and maintain operations at the parks.

Potential options include a business sale, individual asset sales and the introduction of strategic partners or a new management team, all of which are being pursued.

In late 2020, the board decided to wind up the trust, despite its best shareholder returns since launch seven years previously, as share prices recovered and sentiment improved. It recognised that the high-yielding trust lacked scale and investor appeal.

Since then, the shares have fallen 44% to 29p, a 73% discount to the July net asset value per share of 98.21p.