Dawnay Day Treveria, whose property assets are managed by the eponymous financial conglomerate, admitted today it is exploring "alternative arrangements" as concerns heightened about Dawnay Day Group’s financial stability.

Dawnay Day Treveria, an AIM-listed group with property assets worth €2.33 billion (£1.8 billion), said this morning: "Despite extensive recent discussions with the asset managers, the board has not yet been given sufficient reassurance about the current financial stability of the asset managers."

It added: "... the board is simultaneously examining alternative management arrangements in the event that the asset managers are unable to fulfil their obligations to the company in the future."

It emerged at the weekend that Dawnay Day Group, a £2 billion business that controls or has stakes in a huge portfolio of assets, had called in Ernst & Young as administrator after it lost £80 million when it sold a 20 per cent stake in F&C Asset Management.

There are fears that the complex range of assets which it manages or in which it has stakes could systematically collapse if Dawnay Day Group is unable to continue trading.

It is as yet unclear which assets may be affected by the squeeze on Dawnay Day's finances.

In its statement this morning, Dawnay Day Treveria attempted to distance itself from Dawnay Day Group, stating that its "assets and liquidity position is unaffected by current issues surrounding the Dawnay Day Group".

It added: "The company is a separate legal entity controlled by an independent board of directors, five out of six of whom are independent of the Dawnay Day Group."

However, it emerged that Peter Klimt who, alongside Guy Naggar, has run Dawnay Day Group since the early 1980s, is the non-independent director who sits on Dawnay Day Treveria's board.

Ian Henderson, the former chief executive of Land Securities, is Dawnay Day Treveria's non-executive chairman.

Dawnay Day Treveria, whose advisers include Citigroup and Deutsche Bank, was set up by Dawnay Day Group in November 2005 to invest in German high street shops and shopping centres.

Yesterday, three businesses linked to Dawnay Day sold nine million shares in Dawnay Day Treveria. At the same time, LCF Edmond De Rothschild Banque increased its stake in the group from 5.14 per cent to 6.79 per cent when it acquired 9.9 million shares.

Rothschild bought 8.7 million shares in Dawnay Day Treveria from Jetpath and Mariona, investment vehicles in which Mr Naggar and Mr Klimt have substantial interests.

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