The £1.5bn Hercules Unit Trust, a specialist retail warehouse fund managed by Schroders and British Land, has been forced to admit defeat in an attempt to restructure its £800m securitised debt facility.

The property fund has withdrawn its proposal to note holders, which included paying down about £300m of its debt at par in return for a relaxation of its loan-to-value covenants, owing to a lack of the necessary support.