Takeover target Intu said this morning it has seen the value of its shopping centres drop following difficult retail conditions.

The group, which is the target of a consortium led by John Whittaker's Peel Group, said its net asset value fell 3% in the third quarter.

It "reflects current negative investor sentiment towards UK retail property" the company said.

It comes on top of a 5.6% fall in its property values in the first half of the year.

Intu - which owns Lakeside shopping centre (pictured) - said it expects like-for-like net rental income growth of up to 1% in 2018, while the aim is for 2% to 3% of growth per year over the next three to five years, although in 2019 Intu expects only 1% growth.

Shares in the company have fallen 1.41% to 198.65