Impacted by the collapse of the Hanover-based German Real Estate Group (GPG), some 40 brokerage firms, whose clients include more than 1,800 Irish investors, have created a set of procedures for dealing with the liquidator of the Dublin vehicle deal. With their investment. Get some of your money back.
He said the so-called: “Until recently, individual companies only worked with their clients, but it was believed that the collective approach would be a more effective and efficient way of gathering information and resources that would better assist investors in their search for compensation.” GPG said. Thursday equity group.
“The GPG Redress Group is formed to assist the investors by interacting on their behalf, where authorized and appropriate, with all parties involved in the investment, including the liquidator, the Pension Authority and the Department of Finance.” Added.
GPG, formerly known as the Dolphin Trust, has collapsed last year after acquiring more than 1.5 billion euros from investors in the republic, the United Kingdom, Asia and other countries since it was founded by businessman Charles Smithhurst in 2008.
GPG raised € 107 million from Irish investors through a loan bond issue, an unregulated product, to buy and renovate historic buildings in Germany and promise an annual return of at least 15 per cent. The first signs of interest payment default on Irish banknotes appeared in late 2019.
Wealth Options Trustees Limited (WOTL), located in Naas, Co Kildare, acted as the administrator and distributor in Ireland for the loan securities that were sold to investors through a network of brokers.
When GPG collapsed last year, it was in 70 properties, most of them dilapidated and undeveloped. This came from a report that the interim trustee, Gerrit Holzel, submitted to Bremen bankruptcy court last October.
“The business model originally used has collapsed for years,” Holzel said. “Due to the increasing financial constraints, the business model, which was originally focused on real estate transactions, has of course gradually evolved into a pyramid scheme.”
Irish investments have been channeled into the German group through two Special Purpose Vehicles (SPVs) – MUT 103 and Dolphin MUT 116. MUT 103 was liquidated last month. Its size, value, and ability to enforce security against German property were questioned by WOTL-appointed attorneys when GPG collapsed.
“The investors of GPG have been offered an investment based on a clear understanding that the invested funds will not be transferred to Germany unless there is a full and adequate guarantee in the form of listed buildings in Germany,” the working group said.
“This process was described in an Investor Memorandum that was made available to investors prior to their participation, as well as in various product brochures, pamphlets, and correspondence.”
GPG Redress Group has written to the Garda National Bureau of Economic Crime requesting a full investigation of GPG to be conducted and presented to investors in Ireland. A spokeswoman for An Garda Síochaná said: “German authorities are investigating these cases. Garda Síochaná will be available to help through official channels if needed.”
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