Is the 525 subject to the same clogged "pisser" line that I experienced with my m30? In my case I detached the line from where it attaches to the radiator, blew compressed air into it to eliminate the clog (I could then hear and see bubbling in the coolant fill tank, and that solved the problem. This was after I bled 20-30 times, replaced a perfectly good fan clutch, thermostat, tested the aux fan switch, and had a new waterpump in hand ready to replace. I believe it was Winfred who suggested I check the "pisser" line.
1990 535i 5-sp., except for 16" M-Contours, cd deck, and clear corners, completely stock. 226k and running strong