In January 2020, investors received correspondence from German Property Group (GPG), previously known as Dolphin Trust (‘Dolphin’), outlining the issues affecting the scheme and its plans to restructure as an alternative to filing for bankruptcy. This will be worrying news for investors as insolvency may result in the majority investors being unable to realise their investments let alone reap the attractive returns that were initially outlined.
GPG marketed itself as an opportunity to invest in listed buildings in Germany. These properties were purchased with the benefit of loan notes, at a cost under their market value, then redeveloped and sold on with the aim of producing a healthy return for investors. However, the scheme has run into significant issues threatening its future.
The Dolphin investment is a high risk Unregulated Collective Investment Scheme (‘UCIS’) with a complex and opaque structure. These sorts of investments are not usually regarded as suitable for typical retirement investors. Despite this, many individual investors used their pension funds through Self-invested Personal Pensions (‘SIPPs’) and Small Self-Administered Schemes (‘SSASs’) to invest, giving rise to allegations of mis-selling.
Investors are being offered a glimmer of hope with reference to a potential buyer of GPG’s portfolio, and the suggestion of an early exit and offers being made within 6-8 weeks. Sadly there is no news as of yet that investors have received any written offers regarding their investments. Further, even if offers are made, it is likely that investors will be significantly out of pocket and left wondering what the value of their pensions would have been had they not invested in Dolphin.
Have you been promised attractive returns to invest in Dolphin?
Our Financial Mis-Selling team represents a number of Dolphin investors who were not made aware of the high risk and speculative nature of the investment, many of which were sold the investment through Self-Invested Personal Pension (‘SIPP’) providers such as Guinness Mahon, Lifetime, GPC, Berkeley Burke, Stadia and Rowanmoor.