Difficult market environment, virtually no chance of a return, and still a low risk class?
The LLB Semper Real Estate Fund was launched in early 2000 and achieved a solid performance over many years. LLB Immo Kapitalanlagegesellschaft m.b.H. focused its investments primarily on European commercial real estate. Residential real estate played only a minor role. According to the fund manager, the official reasons for the liquidation are as follows: „In October 2023, due to the rapid decline in liquid assets resulting from fund unit redemptions in the preceding months and the generally challenging environment in the real estate markets, LLB Immo KAG was forced to suspend the payout of the redemption price for fund units in order to ensure the proper ongoing management of the fund in the interest of the investors.“
It is striking that despite the „generally challenging environment in the real estate markets“ the fund with the suspension of unit redemptions was only upgraded to risk class 2 of 7. Risk classes 1 and 2 are characterized by the fact that investors are certified as having a particularly low investment risk. Many banks recommended this fund to their clients, primarily for the investment of tax-free profit allowances. Intermediation commissions were also paid to the banks by the fund management company. In the case of the LLB Semper Real Estate Fund, the low risk classification that took place was hardly compatible with the actual risk of the fund for the investor.
The settlement was predictable for professional market participants.
We carefully examined the accountability reports of LLB Semper Real Estate Fondsmanagement and were able to determine that
- the outbreak of the Covid-19 pandemic in 2020 increased cost pressure and significantly reduced the profit margin,
- the entry bans in the retail sector in 2021 exerted further pressure on the fund and
- institutional investors (e.g. banks, insurance companies, pension funds, etc.) significantly withdrew their capital from the fund in 2022.
In our view, the outcome was predictable for professional market participants. Rising interest rates, increasing costs, and lower demand for commercial real estate are putting pressure on profit margins. For private investors, who often relied on the advice of their bank or wealth advisor, the negative development was a severe blow.
What options do I have as an investor?
Private investors are facing damages, the amount of which cannot yet be foreseen at present, due to the liquidation of the LLB Semper Real Estate Fund. The liquidation of the fund will drag on for many years. Based on relevant supreme court jurisprudence, an injured investor is fundamentally compelled to file an action for declaratory judgment within 3 years from the knowledge of events triggering damages.
As a private investor, you have the following options in particular to avert the impending loss:
- Assertion of claims for a declaratory judgment regarding the liability of LLB Immo Kapitalanlagegesellschaft m.b.H. due to incorrect risk classification and mismanagement of the LLB Semper Real Estate Fund
- Assertion of claims against financial advisors and bank advisors due to bad advice in connection with the LLB Semper Real Estate Fund
ATB.LAW supports you in enforcing your claims
If you are a shareholder of the LLB Semper Real Estate Fund (AT0000622980 (A) or AT0000615158 (T)), Patrick Brunsteiner and Roman Taudes gladly for a consultation to assert your compensation claims under office@atb.law or by phone at 01 39 12345 available.
