Church of England Commissioners have admitted losing that vast sum on an investment in a New York apartment block. It was part of $5.4bn consortium, but has admitted writing off the entirety of its £40m share.

Reported in the Times, a spokesperson for the Church Commissioners said they would investigate the lessons of the disastrous deal: “The investment was made in June 2007, which, with hindsight, was at the top of the property market and immediately before the credit crunch,” they said.

Tishman Speyer, the New York company which headed up the deal, bought the apartments in 2006 and funded the move with $4.4bn in borrowings. The property was recently valued and its price tag had dropped $2.6bn to $1.8bn (£1.1bn).

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