Securitisation firm White Tower today launched its High Court claim against chartered surveyors Colliers International, seeking as much as £34.8m for what it claims was a negligent valuation of a £1.15bn property portfolio.
The trial, scheduled to last four weeks and being heard by Mr Justice Burton, began after the judge used much of this week to read up on the complex action.
According to court documents lodged at London’s Commercial Court, White Tower alleges that Colliers, which is now in liquidation, overvalued five of the nine properties in the portfolio by millions of pounds.
The claim relates to a 2006 securitisation of a portfolio of nine office properties, mostly in central London, using a loan from French bank Société Générale. According to White Tower’s claim, prior to issuing the loan, SocGen hired Colliers to write an independent valuation report on each of the properties in the portfolio to ensure that it provided “acceptable security” based on a loan-to-value ratio of 83%.
The portfolio was later sold for £1,130,256,504, according to the claim documents.
White Tower seeks compensation for loss of either £34,850,809 or £19,743,194, depending on how the court chooses to assess the claim.
Colliers International is defending the action.
