Dolphin Capital now known as German Property Group

Dolphin Capital was marketed as an investment opportunity involving German listed buildings which were to be bought, converted into luxury apartments and sold, promising high returns

UK Investors targeted to invest in Dolphin

It’s reported that Dolphin took nearly a billion Euros from investors globally, with over half of that coming from UK investors. 

They were also paying as much as 20% commission to introducers who persuaded people to invest. These introducer firms were not authorised to give financial advice.

Some investors however did receive regulated financial advice, despite this type of high-risk investment generally considered unsuitable for the average investor.

Many people invested in Dolphin through their SIPP pensions with providers such as Greyfriars and Guinness Mahon.

BBC Investigation into German Property Group

In May 2019 the BBC programme You and Yours reported on GPG and visited some of the buildings which were involved in the investment. 

They discovered that although one property was finished and another near completion, worryingly “some of these addresses are all but derelict and others it does not even own” 

Timeline of recent Key Events 

  • April 2019 – Dolphin changed its name to German Property Group (GPG).
  • June 2019 – German Property Group wrote to investors explaining that “various localised factors” had delayed the construction and development on the properties. They suspended the repayment of maturities, but assured “interim interest will continue to accrue on the outstanding loan”
  • August 2019 – GPG informed investors they were now deferring interest repayments for 3 months whilst they resolved the original issue. 
  • December 2019 – Investors received further correspondence saying that they were working with restructuring experts CFE ltd and that payments would be suspended for a further 6 months, whilst this review was ongoing.
  • May 2020 – Clients informed that negotiations with interested parties looking at purchasing had come to a conclusion and they were unable to secure a sale or further investment. German Property Group were now looking at ways of restructuring the investment to avoid insolvency. 
  • June 2020 – Some SIPP Providers are informing their clients that the value of their Dolphin Capital Loan Notes had been reduced.  Also 3 UK registered companies connected to GPG entered into administration. These are Dolphin Bonds UK Limited, Dolphin Bonds UK II Limited and Dolphin Bonds UK III Limited.
  • July 2020 – German Property Group enter preliminary bankruptcy proceeding in Germany. Administrators admit they had found “a total mess”. 
  • Oct 2020 – Investors warned that any money in the scheme was at risk and to take action now 

Can I claim compensation for my Dolphin Investment?

The FCA does not regulate this type of investment so it’s not protected by the UK’s Financial Services Compensation Scheme (FSCS).

However, if your investment involved a regulated company such as Financial Adviser or SIPP operator, you may still be eligible for compensation.

Want an expert opinion? – Try our free assessment check

Whilst each case is individual, as mis-selling specialists we know to look for certain signs that in our experience indicate that mis-selling may have happened.

Our assessment is free and there’s absolutely no obligation to use our service if you have case.  

Key Facts

1
German Property Group - previously known as Dolphin Trust and Dolphin Capital
2
Entered bankruptcy proceeding in Germany in July 2020
3
An unregulated investment, but claims could still be made for mis-selling

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