Argentine court clears return of Nazi-looted portrait worth $400k

Argentina has agreed to return an 18th-century painting stolen by Nazis from a Dutch Jewish art collector to the rightful owner's heir.

A court in Buenos Aires on Friday approved a deal, under which the daughter of a fugitive Nazi official pledged to give up her claim rather than face trial.

Portrait of a Lady, by Italian baroque painter Giuseppe Ghislandi, had been missing for eight decades.

But its existence was revealed last year, after being photographed hanging in the home of the daughter of a senior Nazi officer, who had fled to Argentina after World War II.

"An order will be issued for the painting to be returned to the heir" of art dealer Jacques Goudstikker, judge Santiago Inchausti declared following an agreement reached between the concerned parties.

The painting was first recognised by a Dutch newspaper in photographs of a house for sale in the seaside resort of Mar del Plata.

Experts authenticated the painting as part of the Goudstikker collection and estimated its value to be about €250,000 ($403,500).

It was hanging above a green sofa in the living room of Patricia Kadgien, whose father Friedrich Kadgien was a financier for the Nazi SS paramilitary organisation.

He was one of several high-ranking Nazis to escape to Argentina after World War II.

Ms Kadgien, who clutched a rosary during the hearing in Mar del Plata, was charged with concealment and placed under house arrest along with her husband when the artwork was identified.

The pair agreed to return the painting to Mr Goudstikker's daughter-in-law and sole heir, Marei von Saher, and give about $US3,200 ($4,444) to local hospitals.

"The individuals under investigation essentially committed themselves to renouncing any rights over the painting that is going to be returned,"

federal prosecutor Carlos Martinez said.

"[The work] is in good condition, and expert examinations confirmed its authenticity."

Portrait of a Lady was among more than 1,000 artworks stolen from Mr Goudstikker's collection after the Nazi invasion of the Netherlands in 1940.

Mr Goudstikker fled his country days after the invasion, leaving behind a litany of works that were divvied up by top German officials.

After the war, the Dutch state retrieved some 300 works from the collection, most of which it later returned to Mr Goudstikker's heirs.

But more remain scattered around the globe.

Ghislandi's work is currently under the care of Argentina's Supreme Court, and it is now up to Von Saher's legal team to initiate its return to its owner.

Ms Von Saher intends to display the painting in Argentina as a way to give visibility to Mr Goudstikker's story.

"The family's intention is for it to be exhibited in Buenos Aires for at least a year," her lawyer, Guillermo Brady

said.

He added that his client is in talks with several museums to iron out the details.