The £49m sale of an office scheme by Active Asset Investment Management (aAIM) is under threat amid allegations of misrepresentation on the part of chief executive Robert Whitton.
According to papers filed at the High Court, buyer Forth Property is demanding the return of its £250,000 deposit together with costs of £200,000 as a result of the misrepresentations.
aAIM, the property syndicator, which is backed by Manchester United manager Sir Alex Ferguson, bought the 90,000 sq ft office development in Frimley, Surrey, for £40m in 2004. The development has been prelet for 25 years.
Rent reviews are set according to the retail price index (RPI), and in order to guard against RPI changes aAIM entered into a complex “swap agreement” with HBOS.
During negotiations for the sale Forth alleged that Whitton had said that the swap would add a positive value to the company.
However, it is further alleged that the swap had a negative value of £960,000 and represented a contingent liability to the company. Forth also claims that that liability has now increased to £1.6m.
Forth Property Ltd v Synergy Frimley Ltd and others Chancery Division.
References: EGi Legal News 14/11/06
