Property investment group Real Estate Opportunities, which is controlled by Treasury Holdings, has reached a settlement of its dispute with Aberdeen Asset Management.
ROE had made claims against Aberdeen arising from the launch of REO and the subsequent management by Aberdeen of its income portfolio. The property company said it was continuing with related claims against UBS.
The settlement with Aberdeen provides for an immediate cash payment to be made to REO by Aberdeen and a further cash payment to be made in January 2008.
Aberdeen has also agreed to discontinue its counterclaim against REO for unpaid management fees. Details of the settlement are to stay confidential, but REO said the net effect would be to boost its net assets by just under £50m (€72.5m), taking into account costs and provisions.
A statement from Aberdeen said it had made no admission of liability but had decided it was in the best interests of shareholders to conclude the issue. It said the net cost of the settlement would be £30m sterling.
Claims by Treasury Holdings against Aberdeen arising from the launch of REO have also been settled for an undisclosed sum.
