A multi-million over-valuation claim arising from property lending in the run up to the global financial crisis has been settled out of court. Valuers CBRE and Warwick Street have settled with the owners of the £1.2 billion Gemini property portfolio without admitting liability. The terms of the settlement have not been revealed.
Gemini is a Special Purpose Vehicle set up to finance the acquisition of a portfolio of commercial properties and shopping centres in 2006. Following the financial crisis the value of the portfolio fell to less than £400 million. Gemini accused CBRE and Warwick Street of over-valuing 26 of the 36 properties by £100 million. Later a further seven properties were included in the claim, increasing its value by £70 million.
In 2013 CBRE and Warwick Street defended their valuation saying that it reflected the market value of the portfolio at the time. They said that they “consider that Gemini’s claim is without merit and are confident that it will be dismissed if pursued in court.” Now they have settled the claim without admitting liability.
James Burgoyne, Director – Claims & Technical, Brunel Professional Risks. “A series of overvaluation claims involving securitisations and arising from the financial crisis have been concluded in recent months. It is interesting that this claim has been settled when surveyors in the White Tower and Titan cases successfully defended their valuations.”