Deutsche Finance sues German pension fund BVK over U.S. property losses

Deutsche Finance Group has filed a lawsuit against Bayerische Versorgungskammer (BVK), Germany’s largest public law pension manager, in Delaware Superior Court. The asset manager alleges that BVK is falsely blaming it for significant losses incurred across a nearly $2 billion portfolio of U.S. commercial real estate investments.

Deutsche Finance claims that BVK overstepped its role as a passive investor by actively selecting properties, approving investments, and controlling leasing and financing decisions. The lawsuit alleges that BVK misrepresented the asset manager’s role to regulators and the media to deflect responsibility for losses that Deutsche Finance estimates could reach approximately €853 million. The disputed portfolio includes landmark assets such as the Transamerica Pyramid in San Francisco and the Coca-Cola office building in New York.

BVK has rejected the allegations, stating that the lawsuit is a “transparent attempt by Deutsche Finance to distract from its own responsibility” and asserting that it will defend itself decisively. This legal battle follows a separate New York lawsuit filed by Deutsche Finance regarding withheld management fees following the sale of the Transamerica Pyramid Center.