Erinaceous has settled its £20m High Court dispute over companies bought from the Gould brothers two years ago.

As reported in Property Week last month Erinaceous was suing the Regis Group owners Nicholas and Peter Gould after buying Mount Street Holdings in November 2005 for £51.7m.

Erinaceous claimed the Goulds breached various warranties, meaning it paid £18.2m over the true value of the companies. It also claimed 2.5m in damages. The Goulds also issued legal action in relation to the sale which could not be disclosed.

Resolved differences

Property Week has learnt the two companies will announce tomorrow that they have amicably resolved their differences.

It is understood that no money is to change hands and that both parties will withdraw the separate legal actions.

They will also announce tomorrow that Regis is to employ Erinaceous on a new property management contract.

The Goulds had previously been in the public eye after they attempted to buy listed residential property company Grainger last year.