There has been movement in the case involving two dilapidated properties in Bamberg. The Hanover public prosecutor’s office has brought charges against the former managing director of the German Property Group (GPG).
Accusation: Listed buildings were bought and allowed to fall into disrepair
The GPG bought the two listed buildings and allowed them to fall into disrepair instead of renovating them. The defendant is accused of commercial fraud in 27 cases. Real estate all over Germany and investors from all over the world are affected.
The situation is different in the two Bamberg buildings, a city spokesman told BR24. The Untere Königstrasse 13/15 still belongs to the GPG and is part of the insolvency estate. The city of Bamberg would like to buy this building, the former “Red Ochsen”. However, it is not for sale yet. However, the city has an agreement with the collecting society that it will be informed as soon as the property comes on the market. With the indictment of the former GPG managing director, the eventual purchase has come one step closer.
City purchased Sound N Arts from GPC shortly before bankruptcy
The city was more lucky with the other property: it acquired Sandstrasse 20 shortly before GPG went bankrupt. The former “Sound N Arts” consists of four building parts of different construction times. In 2019, the buildings had to be closed and structurally secured due to structural problems, according to the city spokesman. The empty buildings are now to be converted into a cultural center with a music club, restaurants, offices and living spaces. The city is currently working on an overall concept that takes into account the aspects of monument preservation. The renovation is being funded with funds from the federal funding program “National Urban Development Projects” (NPS).
Public prosecutor’s office: Damage amounting to 56 million euros
The defendant founded Dolphin Capital GmbH in 2008. It was renamed Dolphin Trust GmbH in 2014 and German Property Group GmbH in February 2019. The company’s business purpose was to acquire, renovate and sell listed properties. Ten years later the GPG was insolvent. Nevertheless, according to the indictment, the defendant continued to run the group of companies and continued to collect investor money. He is said to have misled investors about GPG’s solvency. In total, damage amounting to 56 million euros was caused, according to the Hanover public prosecutor’s office.
