Following on from our previous post regarding Dolphin Trust, the investment scheme specialising in the development of German listed buildings, TLW understands that a letter has now been sent to all investors giving yet more bad news about the investment and raising serious questions about the viability of the scheme.
Latest update regarding Dolphin Trust investments
In a letter dated 7th August 2019, German Property Group, the new name for Dolphin Trust, has confirmed that “no further interest payments” will be made to investors for the next 3 months, but instead the interest will be paid in full at the end of the investment period.
Perhaps of more concern, the letter confirms that Dolphin Trust is:
“In discussions about the possible sale of properties where such a sale would be more financially beneficial to our clients than continuing with development ourselves.”
What does this mean for investors?
+ −This clearly shows that at least some of the properties Dolphin was supposed to be developing have not yet been developed and it would appear it is simply not financially viable for Dolphin to carry out the work. That must raise questions as to whether the sales of these properties will generate the money needed to allow investors to make the returns they were expecting or whether there will be losses suffered by investors and how bad those losses will be.
While the letter seeks to reassure investors that their investment remains safe “because it is secured against tangible assets in the German property market”, the letter appears to confirm the findings of an investigation by BBC Radio 4 which featured on their “You and Yours” programme in May 2019.
The BBC investigation pointed out that some of the properties to be renovated and converted, for example into residential flats, were simply not suitable and would require substantially more investment than was projected. The report also questioned why investors had no information regarding the specific properties they were investing in, as well as highlighting the significant commissions, up to 20% of the money which investors invested, earned by those selling the investments.
TLW Solicitors’ view
+ −TLW Solicitors’ view
TLW partner Peter McKenna appeared on “You and Yours” in May talking about Dolphin. Following this latest letter to investors, Peter commented:
“This latest news will add to the apprehensions that investors in Dolphin Trust currently have. The failure to pay interest payments that are due to investors would be bad enough. The fact that up to 20% of the money invested was immediately paid to the salespeople selling the Dolphin Trust investments, and the news that some of the properties will likely not be developed, should raise most concerns about whether investors will receive all they are due back from Dolphin.”
Even before this latest news, the specialist financial mis-selling team at TLW Solicitors have been contacted by concerned investors who have not yet received the returns promised from their Dolphin Trust investment or who are struggling to get their capital investment repaid to them. Many of these investors did not realise and were not made aware by their financial advisers, that schemes like this can be very risky.
Those people were already understandably worried about the sustainability of their investment and the advice they were given by their financial adviser to invest in Dolphin and this news will be little to allay those fears.
To hear the full BBC programme, follow this link and log into BBC iPlayer.
TLW Solicitors can help you
+ −If you have invested your pension, or part of it, with Dolphin Trust (now known as German Property Group) 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 are also able to pursue a claim even if those that provided the advice to invest have 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 which arranged your investment.
- The money you would have made if your pension/savings had remained where they were.
If you think that you, a friend or a family member may have invested in Dolphin Trust, then please get in touch with one of the specialist financial mis-selling lawyers here at TLW Solicitors on 0800 169 5925, email info@tlwsolicitors.co.uk or complete the callback form.
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“This latest news will add to the apprehensions that investors in Dolphin Trust currently have.”
Peter McKenna
