
After billions in losses in US real estate investments, Bafin is expanding the powers of its special representative at Deutsche Finance Investment GmbH.
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BVK recorded high losses on US real estate investments made in collaboration with Deutsche Finance and SHVO. Bafin is examining the company due to a lack of transparency.
After billions in losses from real estate transactions in the USA, the pressure on the fund provider is growing. The financial supervisory authority is expanding the competencies of its special representative in the company.
Frankfurt. The financial regulator Bafin has expanded the powers of its special representative at a subsidiary of Deutsche Finance to include management functions. The authority announced this on Monday. The aim is to actively protect investor interests and ensure the proper management of all of the company's funds.
The representative can therefore take measures for assets in the funds of DF Deutsche Finance Investment GmbH and enforce proper business operations. This includes completing outstanding annual reports and pursuing possible claims against third parties.
Last week, the Munich public prosecutor's office had Deutsche Finance's business premises searched. The background is US real estate investments by the pension fund group BVK. Deutsche Finance was cooperating with the authorities and had been in contact with them for some time, the company said at the time.
BVK had reported large losses on some of its US real estate, which it attributed to Deutsche Finance and the project developer SHVO. The group expects depreciation of up to 853 million euros on an investment total of around 1.6 billion euros. By the end of last year, 392 million euros had already been written off.
Deutsche Finance said in a statement on November 5 that Mahmoud Hawari will assume responsibility for portfolio management and internal audit at Deutsche Finance Investment. In the future, he will work with Christian Keymer and replace Stefanie Watzl, who will take on new tasks in the company. At the same time, Hawari was appointed as a special representative by Bafin with management powers.
The supervisory authority had already ordered the company to disclose information and documents in June. A rating agency had previously withdrawn its rating citing a lack of transparency.

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