Colliers taken to court over value

COLLIERS International is facing legal action over its valuation of a German property whose owners and occupants went bust.

The case is being brought to the High Court in London by a “special purpose vehicle”, Titan Europe 2006-3. The vehicle, which bought a loan secured on the property from Credit Suisse, claimed negligence when the value of the building in Nürnberg fell by 89 per cent.

Colliers had valued the building at €136 million (£92m) in 2005. The site was re-valued by a different firm after its owner, Dutch property company Valbonne Real Estate, and its tenant, Quelle, both failed.

It is thought to be the first time that a legal ruling in Europe could be made regarding a securitised debt transaction on a commercial property. If a settlement is not reached by 31 January then a trial will commence.