Real Estate Opportunities, the property investment fund controlled by Treasury Holdings, has served proceedings on Aberdeen Asset Managers and UBS Limited (formerly UBS Warburg Limited).

REO says it is seeking compensation for substantial losses suffered by REO in its income portfolio, which was set up by those advisers in June 2001.

A statement said the legal action followed a failure to negotiate satisfactory compensation payments. 'REO is determined to obtain appropriate compensation and will pursue its case with vigour,' it added.