German Pension Fund Accused of Mismanaging US Real Estate Portfolio

Bayerische Versorgungskammer (BVK), Germany's largest public pension group, is facing a new lawsuit claiming it mismanaged and ruined its multibillion-dollar portfolio of investments in US real estate.

The suit comes from Deutsche Finance America, the US-based arm of a Munich asset manager hired by BVK to oversee the $2.3 billion real estate portfolio.

Properties included the Transamerica Pyramid in San Francisco, the Coca-Cola building in Manhattan and the Mandarin Oriental Residences in Beverly Hills.

BVK allegedly lied about its involvement in the investments, claiming it was a passive investor when in fact it exercised control over leasing, construction, financing, pricing and capital decisions.