Overview
- The fund invested up to €1.6 billion in offices and hotels in cities such as Manhattan, San Francisco and Miami, triggering 2024 write-downs of more than €160 million and further losses on troubled properties.
- A significant share of transactions ran through U.S. investor Michael Shvo, who was convicted of tax fraud in 2018.
- BVK removed two long-serving investment managers and engaged an external review of the deals.
- Munich prosecutors have opened preliminary investigations into the matter.
- U.S. tenants and buyers are preparing civil lawsuits, some citing the RICO statute, as political scrutiny of oversight in Bavaria intensifies.