The vacant building of the former headquarters of the Soviet armed forces, the so called "White House" in Zossen, near Berlin, was pitched to South Korean investors as a luxury property redevelopment opportunity.
Photographer: Stefanie Loos/BloombergInvesting
How $1 Billion in Investor Money Was Wiped Out By a Property Pitch
From the U.K. to Singapore, investors are questioning whether the glossy developments displayed in a real estate company’s slick marketing were real.
The pitch was as compelling as it as was dramatic: A German-born son of a British army officer would transform old monasteries, historic military sites and castles into gleaming apartments.
Potential investors would get double-digit returns after two to five years, with Germany’s reputation as a safe place to do business providing additional reassurance.