Value of Dolphin Trust Loan Notes downgraded to 10% of original investment

Hartley Pensions are now recording any initial Dolphin Trust investment as 10% of the original value.

Investors in The Dolphin Trust/German Property Group have been dealt another blow with the news that Hartley Pensions are now valuing their initial investment at 10% of the original value.

The news comes after investors were told that negotiations with interested parties to buy the portfolio of property has fallen down, with the interested parties pulling out due to the “current climate of uncertainty”.

The latest news comes from Hartley Pensions who acquired now-defunct Sipp provider, Guinness Mahon, in February 2020. Hartley have taken over the administration of Guinness Mahon’s self-invested personal pensions, many of which are directly linked to The Dolphin Trust/German Property Group properties.

Dolphin Investments fall to 10% of original value

Hartley Pensions got in touch with Dolphin Trust/German Property Group investors to tell them that, with immediate effect, all loan notes will be recorded as being 10% of their original purchase. value This, they stated, means if your initial investment was purchased for £50,000 it will now be recorded as £5,000 until further notice.

The reasoning behind this valuation, Hartley say, is due to the suspension of interest and redemption of payments by Dolphin Trust/German Property Group. The 10% valuation will be kept until there is sufficient evidence to prove otherwise.

If you are an investor, Smooth Commercial Law appreciate that this is extremely concerning. However, this only further supports any investor’s case that you have suffered a loss, and this can help us quantify how much your claim for compensation is for.

Who are The Dolphin Trust/German Property Group?

The Dolphin Trust is an investment scheme that specialises in the refurbishment of listed buildings in Germany. The Dolphin Trust, as it was known in April 2019, claims to buy derelict buildings in prime locations which it then redevelops into luxury apartments. It is now known as German Property Group (GPG).

GPG has borrowed an estimated £600m from UK investors, and told these investors that their money would be safe because of the “First Legal Charge” they would get against the property – a document which entitles the investor to claim their money back from the sale of the property if the borrower fails to repay. As far as we are aware, not one client received their supposed “First Legal Charge”.

The Dolphin Trust/German Property Group hit headlines in May 2019 when a BBC report found that many investors had not received any of the returns on investment they had been promised. Many of the people who have lost money are not experienced investors and have invested their entire life savings into GPG. The BBC report tells of warehouse worker, Roy from Kent, who transferred £35,000 from his pension and expected to receive money back in March 2019. This never came true and the investor had potentially lost the entirety of his pension. 

How can Smooth Commercial Law help?

Are you a Dolphin Trust/German Property Group investor? We may be able to help.

If you think you are the victim of a mis-sold SIPP from The Dolphin Trust, or if your SIPP is not performing as you were told it should be, then please get in touch with our specialist mis-sold SIPP solicitors to see if we can claim compensation for you.

At Smooth Commercial Law, our team of experts have experience in dealing with a whole manner of claims that arise from negligent, fraudulent and/or unsuitable financial advice, including unsuitable transfers from pensions. We are seeing an increase in claims for mis-sold pensions and unsuitable investments, and have managed to secure compensation for many of our clients.

Should you have a claim for negligent financial advice, we can deal with your case and look to recover compensation for not just your loss of investment but also any adverse tax liabilities that you may now be facing as well.

You can contact our experienced team by calling 0800 046 9976 or by emailing sb@smooth-commercial-law.co.uk.