Bayerische Versorgungskammer (BVK), Germany’s largest public pension fund, has rejected allegations of misconduct brought following the sale of the $725m (€617m) Transamerica Pyramid Center in the US.
BVK, DFA and New York City-based property developer Michael Shvo acquired the office tower and two neighbouring properties in 2020 for $700m (€634m).
According to a recent court filing in New York, Deutsche Finance America (DFA) has accused BVK of going to “concerted, conspicuous lengths to evade its contractual obligations to DFA” to avoid paying approximately $31.3m in management fees following the sale of iconic San Francisco skyscraper in March 2026 to Cyprus-based investment firm Yoda.
DFA claims that, under a September 2024 restructuring agreement, it was granted specific fee protection ensuring payment through 2028 in the event of termination.
In the filing, DFA states that BVK reportedly paid co-manager Michael Shvo $45m under an identical clause in 2025 while refusing to pay DFA.
DFA also alleges that BVK attempted to “circumvent and redesign” the transaction structure prior to the sale “all so DFA would have no ready recourse to recoup the fees it is owed post-transaction”.
According to the filings, DFA was entitled to a specific protection clause regarding its work on the Transamerica Pyramid. If terminated as asset manager before 31 December 2028, DFA, acting through its special purpose vehicle DF TPC JvCo, would be “entitled to receive… all fees that would have been payable to DF through 31 December 2028 had such termination not occurred”.
The amount is estimated to be approximately $31.3m.
In a statement, BVK told IPE Real Assets that it had been “informed by third parties” that a subsidiary of DF had filed a petition in the US against, among others, an externally managed BVK fund of funds.
BVK, which manages capital for approximately 2.8m pensioners, said that the petition refers to the enforcement of a provisional arbitral award that was “mutually agreed upon by all parties”.
The pension fund said: “BVK is neither a party to the petition nor to the arbitration proceedings. Nevertheless, Deutsche Finance makes extensive, unfounded allegations against BVK itself in the submissions filed with the court. BVK vigorously rejects the allegations made in the submissions and will resolutely defend itself against any misrepresentations in the interest of its members, insurance takers and beneficiaries.”
A spokesperson for DFA said the firm had no further comment beyond the information provided in the legal petition.
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