exclusive
Apartment owners in Germany trust property managers with billions of euros. A network of companies apparently invested more than 30 million euros in apparently risky bonds – sometimes without the knowledge of the owners. This is what research by BR and Mr.
It was a rude awakening when Günter Hormann looked at the account of his homeowners association (WEG) Heidering in Hanover at the beginning of 2022. The 83-year-old discovered that the former property manager had debited around 180,000 euros from the WEG joint account, something he and other owners knew nothing about. The WEG urgently needs the money for the maintenance of the block of houses, which has more than 100 condominiums. The outdated elevators will soon need to be replaced.
As WEG advisory board member Hormann now knows, the money flowed from the previous property manager, Consigma München GmbH, to DR Deutsche Rücklagen GmbH. According to its own information, it invests WEG money in bonds to finance construction projects and real estate. For a long time, Hormann didn’t know exactly where the money was.
Owners’ reserves are under special protection
The legislature wants to prevent risky transactions with property owners’ reserves. They should be created in a “treasury safe” manner. This is to ensure that the WEG retains their savings for the maintenance of their properties. It’s a lot of money. The Property Living Association estimates that property managers nationwide hold around 72 billion euros in trust.
According to its own information, Deutsche Rücklagen has invested more than 30 million euros of WEG money in bonds. According to research by BR and Mr The Consigma Group plays a role in this: It is based in Wiesbaden and has bought up numerous property management companies in Germany since 2017. According to the research, Deutsche Rücklagen and the Consigma Group are linked to one another in terms of personnel and organization. The focus is on the property management companies of the Consigma Group.
Property managers invest WEG funds in bonds from DR Deutsche Rücklagen GmbH, which is registered in Munich until mid-November. From there, the money flows through a trustee to project companies that are supposed to use it to finance construction projects and real estate.
A high-ranking Consigma manager advertised the bonds to WEG several times in 2021. When asked, he writes that this is incorrect. BR and Mr There are advertising letters with the signature of this very manager. Those responsible at Deutsche Rücklagen and the Consigma Group respond to initial inquiries, but do not want that BR and Mr call their names.
After objection the money was returned
In Bavaria, too, Consigma Munich deducted a six-figure sum from a WEG shortly before a change of administrator – without the knowledge or consent of all owners. This money also became a loan from Deutsche Reserven. After objections from the new administrator, WEG has now got its money back. And there are indications that other WEGs in Bavaria and Baden-Württemberg were affected.
The German reserves offer property management companies the opportunity to “invest reserve funds for their WEG customers in accordance with the law,” it says in writing. The offer, which was originally intended exclusively for Consigma customers, is now “also used by other property management companies”.
German reserves fall through disagreements on
In the course of the research, Deutsche Rücklagen changed its homepage: initially it says it was founded in 2021, now it says 2014. Information on bonds is also changed. According to the imprint and commercial register entry, Deutsche Rücklagen is located in Munich at the beginning of November. Reporters arrive on site BR and Mr just a mailbox with a total of nine companies on it. The German reserves sign is stuck on with scotch tape. And the German reserve is moved: a few days later it is registered in Tauberbischofsheim. As a subtenant of a subsidiary of Volksbank Main-Tauber. The bank maintains depots for bonds from Deutsche Reserven. The bank refers to banking secrecy and does not want to comment.
Daniel Bauer is chairman of the board of the protective association of investors (SdK). He assesses the bond as a risky security. He considers it alarming that WEG Heidering in Hanover was not informed about the bond. He also finds it difficult that the money should be used to finance construction projects. Especially since the construction industry is currently struggling with difficulties due to increased energy prices and higher interest rates.
“Should that Public prosecutor take a look”
Bauer also considers the structure of the corporate network to be sensitive: The connections between the property management companies of the Consigma Group, the bond business of Deutsche Rücklagen and the project planning companies look to him like a system to “grab” money from apartment owners: “In my view, it should Let the public prosecutor’s office take a look at it.”
In response to inquiries, network managers write that the business model has been legally reviewed. There are no conflicts of interest and there are no involuntary investors.
Günter Hormann and his WEG in Hanover demanded their money back in October. German reserves say it usually takes five working days. But the wait for the owners only ends after around four weeks. As BR and Mr If you ask about the specific case, there is no answer from the responsible managers of the Consigma Group and Deutsche Reserven. Shortly afterwards, WEG in Hanover got its money back.