(Alliance News) - Urban Exposure PLC on Thursday said it will pay out GBP400,000 to settle a claim made by Corporate Finance Ltd.
Shares in asset management services provider Urban Exposure were down 1.1% at 69.22 pence in London on Thursday afternoon.
Jones Lang LaSalle and Urban Exposure's legacy business signed an agreement in 2016, before Urban Exposure launched in 2018, wherein Jones Lang LaSalle agreed to introduce the legacy firms to possible funding partners in return for an introduction fee.
Following the 2018 Urban Exposure launch, the legacy firms ceased to operate and are still being wound down.
Urban Exposure's subsidiaries entered a joint venture with KKR to finance mainstream housing developments in the UK in July 2018, following which John Lang LaSalle claimed against the legacy companies for payment of introduction fees.
Consequently, John Lang LaSalle has agreed to settle its claim for GBP400,000, which London-headquartered Urban Exposure will pay.
"Although the company is not a party to the [Jones Lang LaSalle] agreement, the board believes that the benefit to the company of concluding this matter and not being drawn into any contentious proceedings justifies payment by the company of the settlement amount. The cost of the GBP400,000 should be seen in the context of the KKR joint venture, which will generate material earnings over the five-year life of the venture," said Urban Exposure
By Anna Farley; annafarley@alliancenews.com
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