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ACI Real Estate has filed for bankruptcy on four of its seven property funds, according to media reports in Germany.

The company – which launched a number of celebrity branded towers in Dubai – is understood to have declared the funds bankrupt at a court in Bielefeld, Germany.

The property funds were launched in 2004, with investors believed to have paid $75m into them. The first fund six years ago was used to develop a property in Jumeirah Lake Towers, Funds two and three were used for ACI’s City of Arabia development, and funds four and five for projects in Business Bay and Victory Bay.

Funds six and seven related to investments in the sports-branded Michael Schumacher and Nikki Lauder developments.

Payments from the funds were due in March last year, but did not materialise. Shortly after, the company’s boss Robin Lohmann told Arabian Business: “Giving money back is not an option as this point in time. The money has been invested in the land, which is fully paid for, and the money has been spent in the development, which is normal – the contractor and suppliers are not working for free.”

It is not clear whether work will now progress on a string of ACI Real Estate projects in Dubai. In 2008, the company announced plans for Michael Schumacher Business Avenue, Boris Becker Business Tower and Niki Lauda Twin Towers.

Construction on all three projects stalled last year. Its website still lists 11 projects that it says are under development, with another six being undertaken by “third party developers”.

Last year Lohmann hit back at claims that the projects were being cancelled and that investors would lose their cash, saying: “For me there is no chance I will do a hit and run. You know why? Because I haven’t even collected the money I have invested and spent here. I’m not going ahead and losing AED500m ($136.1m), it’s not the way.”

Lohmann could not be contacted for comment.

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Gütersloh/Bielefeld (dpa). Several companies for real estate funds in Dubai under the umbrella of the German investment company ACI signed bankruptcy on Friday. This handle the companies of Fund II to V and ACI IV Beteiligungs GmbH, was announced by the Amtsgericht Bielefeld. A provisional administrator will probably determined on Monday, it was said. Document number not issued yet.
The company had previously announced the bankruptcy. Reason was the price drop in real estate in Dubai, stressed ACI founder Uwe Lohmann. “Inevitable accounting depreciation of the carrying amount of the projects in Dubai” had then resulted in the bankruptcy.

The Fund VI and VII are not affected. ACI (alternative capital invest) have around 70 million investors money collected and distributed so far EUR 13.8 million. The building projects, several skyscrapers in Dubai, are “in unfinished construction”, said Lohmann.

After a determined the public prosecutor’s Office Bielefeld suspected of investment fraud against ACI for months.

In November 2009 the State company had Dubai acknowledged world, that he and his real estate subsidiary Nakheel which is known for the construction of the artificial island in Palm had accumulated debt of approximately $ 60 billion. Resulted in a significant loss of confidence by investors in the region of Dubai according to banks.