Real Estate Opportunities to gain €73m from Aberdeen settlement

THE Treasury Holdings-backed property investment company, Real Estate Opportunities (REO) has reached a settlement in its legal battle with minority shareholder, Aberdeen Asset Management, which will see the company’s assets boosted by more than €70 million.

REO had taken legal action against both Aberdeen Asset Management and UBS related to investments made on REOs behalf — from which it suffered heavy losses in its income fund — after its flotation six years ago.

Both Aberdeen and UBS were previously investigated by the Financial Services Authority in Britain over a wider study on split capital investment trusts — where shares are split into different classes with different rights, return potential and risks linked with each class; such a structure which applies to REO shares.