Aareal Bank, the German property lender has been forced to increase bad debt provisions by almost €280m ($340m), said it needs to raise additional capital and forecast pre-tax losses this year at €100m. Its chief executive has stepped down.

News of the capital raising sent the shares down more than a quarter. At 11.30 GMT on Tuesday, Aareal shares were trading down 26.47% at €21.17. The fall wiped £250m from its €1.02bn stock market valuation.