Real Estate Opportunities (REO), the property investment firm controlled by Dublin-based Treasury Holdings, has reached a financial settlement with its former financial adviser UBS over allegations surrounding its involvement in losses incurred following REO's creation and flotation.

In a statement yesterday, REO, which is 57 per cent owned by John Ronan and Richard Barrett of Treasury Holdings, said the settlement provides for an immediate cash payment. While the terms of the settlement remain confidential, REO said the net effect of the payout, providing for costs as appropriate, would be to enhance its net assets by about £6.3 million (€9.2 million).

The settlement comes less than two months after REO received a payout of £49.7 million from Aberdeen Investment Managers over its involvement in the same issue. This action also followed a ruling by London's supreme court at the start of March requiring both UBS and Aberdeen to hand over sensitive documents relating to a previous investigation into split capital trusts by the UK financial regulator to REO. It is believed that these documents could have helped REO win its legal action.

Both settlements relate to allegations by REO that the share structure established by Aberdeen and UBS when it was set up was excessively complex and overly risky. In the statement REO said claims by Treasury Holdings against UBS have been settled for an undisclosed sum.