Dolphin Trust GmbH (GPG) Warns Investors of Choice Between Debt Restructure & Insolvency
Have you been advised to invest your pension fund in Dolphin Trust GmbH (now known as German Property Group)?
Dolphin Trust GmbH is an investment scheme specialising in the development of German listed buildings, promising returns of 10% to its investors. The scheme was commonly available to investors via a Self-Invested Personal Pension (SIPP) and often following recommendations made by an Independent Financial Adviser (IFA).
The investment is not regulated by the Government backed watchdog, the Financial Conduct Authority (FCA), and the bonds under the scheme are only payable on maturity after either two or five years.
Having spoken with many concerned investors over several months, the TLW financial mis-selling team has been closely monitoring developments with the troubled investment company. In our previous blog, we highlighted that Dolphin Trust GmbH had rebranded to the name German Property Group GmbH (GPG). Investors were also warned at that stage that maturity payments could be delayed by up to a year.
The latest development is a letter to investors dated 4th May 2020, where GPG Chief Executive, Charles Smethurst states:
“Negotiations with interested parties wishing to buy the whole portfolio has now come to a conclusion…due to the current climate of uncertainty investors decided they would only be interested in limited properties.”
“the only way forward is the choice between full restructuring of GPG debt or insolvency. With the current economical climate I believe we would see a reduced amount that CPG would be able to return to our investors.”
What does this mean for Dolphin Trust (GPG) investors?
TLW’s specialist financial mis-selling solicitors are regularly contacted by worried investors who have not yet received the returns promised from the scheme or who are struggling to get their capital investment back. Many did not realise, and were not made aware by their financial adviser, that schemes like this can be high risk.
The maturity payment delays, interest problems, possible sale of properties that have not yet been developed, and now the suggestion of a substantial debt restructure as an alternative to insolvency will create understandable worry for investors.
The latest letter appears to confirm the findings of an investigation by BBC Radio 4 featured on the “You and Yours” programme last year. The BBC investigation pointed out that some of the properties to be renovated and converted were unsuitable, requiring far more investment than was projected. The report also questioned why investors had no details about the specific investment properties or information about commissions paid on these transactions.
TLW Solicitors’ view
Given his financial mis-selling experience, TLW partner Peter McKenna was interviewed on the BBC Radio 4 programme “You and Yours” and following this latest letter to investors, Peter comments:
“We have long been concerned for Dolphin/GPG investors and this latest update to the investors justifies our concerns. It seems to be becoming more and more likely that not only will investors not get the returns they were expecting from their investment, but they will lose, at least part, of the money which they have invested. Any debt restructure is likely to result in significant losses to investors while insolvency may result in investors losing the whole of their investment.”
TLW Solicitors can help you
If you or a loved one have invested your pension, or part of it, with Dolphin Trust GmbH (now known as German Property Group, GPG) and are worried about your investment and the financial advice that you received, please get in touch with TLW Solicitors for a no obligation discussion to see if we can help you.
TLW Solicitors are experienced in claiming no win no fee compensation for clients who have invested their pension funds in high risk unregulated investment products via a SIPP. TLW’s specialist lawyers can also pursue a claim even if the IFA has gone out of business.
In such cases, as well as being entitled to claim towards the amount which you invested, you may be able to claim:
- Fees paid to the IFA and SIPP company who arranged your investment
- Money you would have made if your pension/savings had remained where they were
To get in touch with one of the specialist financial mis-selling lawyers here at TLW Solicitors call us on 0800 169 5925, email firstname.lastname@example.org or complete the call back form below.
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