Capital Shopping Centres, Britain's largest mall owner by floor space, said it was not planning to buy more land from its largest shareholder, after a recent purchase sparked accusations of a conflict of interest.

CSC shareholders last week approved the purchase of a 74 acre site in Malaga, southern Spain from the firm's top investor Peel Group.

However, it was criticised by some as a sweetheart deal, with Peel Group founder John Whittaker standing to receive an initial 10 million euros from the transaction, having spent 20 years assembling the Spanish site.

Whittaker became CSC's deputy chairman and a 20 percent shareholder last year through its purchase of the Trafford Centre mall in Manchester,

We have no deals in contemplation at the moment with John Whittaker, CSC's Chief Executive David Fischel told Reuters on a conference call on Thursday.

We view the (Malaga) option as giving CSC quite a considerable shopping centre opportunity but at very low cost minimal risk, he said.

CSC owns 10 of Britain's top 25 shopping centres including Metrocentre in Gateshead. Its purchase of the Malaga plot marks its first foray into Europe, though Spain is seen as one of the most troubled real estate markets in Europe.

They say 'at the moment', but who knows, Jefferies analyst Robbie Duncan told Reuters, saying that Whittaker should not have voted to help ensure the deal was approved.

Net asset value per share rose to 391 pence in 2011 from 390 pence in 2010, while net rental income for the year rose to 364 million pounds from 277 million pounds in 2010, CSC said in its full-year results on Thursday.

Occupancy fell to 96.7 percent from 97.7 percent the previous year, largely due to tenants representing around 1 percent of rental income going into administration in the fourth quarter, CSC said.

Retailers accounting for another 2 percent of CSC's rent roll went into administration in the first few weeks of 2012, it added.

British retailers have struggled as government austerity measures, rising prices and stagnant wages growth force shoppers to cut back on spending on non-essential items. CSC said it expected more tenant failures and closures on lease expiries as Britain's tough economic conditions continued.

British Land, the country's second-largest listed developer, said growth in the value of its property portfolio slowed to 0.3 percent in the last three months of 2011, citing difficulties facing retail property.

At 1015 GMT, shares in CSC were down 0.2 percent, broadly in line with the UK property stocks index.

(Reporting by Brenda Goh, Editing by Tom Bill and Mark Potter)