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Halesowen-based A&J Mucklow has plans for a mixed-used development at a 20-acre site in Birmingham, which it claimed would create more than 1,000 jobs.

The property developer has submitted a joint outline planning application with Helical Retail for the site in Tyseley.

The proposal is to regenerate the combine area of the land, which is 33 acres, with highway improvements, a supermarket, non-food retail and industrial units.

In its half year to 31 December, the company recorded a fall in pre-tax profit from £4.8m to £1.9m as a result of a £6.6m deficit on the revaluation of investment properties and development land.

The occupancy level in its property portfolio increased to 93.5 per cent, up from 92.7 per cent,

"However, property values have started to drift, reflecting a decline in investor appetite for risk and uncertainty in the debt markets," the group told the Stock Exchange.

Chairman Rupert Mucklow said: "We are entering our second half century as a listed company in very good shape. We are not anticipating any significant change in occupancy levels during the next six months and remain on target for another satisfactory year to 30 June 2012.

"Property values may fluctuate a little during these uncertain times, but current market conditions provide us with opportunities to acquire modern investment properties on attractive yields and allow us to continue to maximise income and value from our other assets."

The investment portfolio, including development land was valued at £255.8m, which showed a revaluation deficit for the period of £6.7m. DTZ Debenham Tie Leung reviewed the value of the investment properties at 31 December 2011.

Since the half year end, Mucklow has bought a 15,800 sq ft office building in Coventry, with 81 car-parking spaces, for £1.5m.