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After the duke had acquired the former manor of the Bombast von Hohenheim family, minor nobility - with Theophrastus von Hohenheim called Paracelsus as its most notable member - in 1768, he gave it to his mistress Franziska Leutrum von Ertingen, including the title of a Reichsgräfin von Hohenheim. From 1772 Karl Eugen had the manor house rebuilt as a water castle surrounded by an extended English garden featuring several midget replicas of historic buildings, an arboretum and numerous exotic plants. The construction of the present-day palace started in 1782 but discontinued with the duke's death in 1793.