Deutsche Finance Sues Germany's BVK in US Court Over Real Estate Dispute
Deutsche Finance has filed a lawsuit against Germany's Bayerische Versorgungskammer (BVK) in a US court, alleging defamation and breach of contract. The lawsuit claims that BVK unduly interfered with the management of several real estate investments, leading to significant losses.
The dispute centers around a fund structure used by BVK to invest in US properties, including the Transamerica Pyramid in San Francisco and New York's Coca-Cola office building. Deutsche Finance allegedly had no discretionary decision-making authority over these investments.
BVK has said that it invested €1.6 billion ($1.9 billion) in US real estate with the help of Deutsche Finance and developer Michael Shvo, warning that losses could reach €853 million. In response to the lawsuit, BVK stated that it will 'defend itself decisively' and accused Deutsche Finance of attempting to distract from its own responsibility.