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Out of court settlement agreed over land deal
A dispute over the legal interpretation of the valuation of land sold by Aberdeen City Council to the Stewart Milne Group has been settled out of court.
The two organisations have agreed a settlement of £1million, including interest, that will be paid by the end of January 2014.
The dispute centred on the value of a piece of land at Carnie, which was sold to the Stewart Milne Group by the council in 2004 with a profit share provision which would give the authority a percentage of the market value of the 11 hectare site if it was sold on.
The basis of the valuation was determined in the Supreme Court in 2012. Discussions between Aberdeen City Council and the Stewart Milne Group about the value of the land and the amount of money which could be due have been fully considered and have resulted in the agreement.
Director of Enterprise, Planning and Infrastructure Gordon McIntosh said: "It makes sense for the council to accept an offer which we feel is fair and reasonable from the Stewart Milne Group, rather than continue with protracted court proceedings and associated risks."
John Irvine, Group Finance Director, Stewart Milne Group said: "We are pleased that the matter has been resolved and look forward to continuing a positive working relationship with the council in the future."