The Cork-based Brendan Investment Pan European Property plc was established in 2007 with plans to raise equity investment up to €250 million.
The investment vehicle allowed a minimum investment of €5,000 and 10,000 people downloaded the company’s prospectus and brochure.
However, the crash in the property sector resulted in the company raising only €12.6m through the public round of funding.
The accounts just filed to the Companies Office show that almost 700 people from across the country have bought shares in the company.
The documents show the company in the 12 months to January 31 last reduced its operating losses by 33% from €328,445 to €219,767.
However, interest income on investments for the company declined by 52% from €439,398 to €206,728 resulting in the pre-tax loss of €11,039.
The pre-tax loss compared to a pre-tax profit of €110,953 in 2008.
The accounts show that the company paid €34,980 tax on the pre-tax loss leaving a post-tax loss of €46,019. The directors are not recommending the payment of a dividend.
The filings show that the company’s administrative expenses increased last year by 21% from €328,445 to €396,934.
The company had operating income of €177,167 compared with no operating income in 2008.
A Germany subsidiary of BIPEP invested €15.7m in a commercial property in Dusseldorf, Germany, in October 2008 and the accounts show that BIPEP had net assets of €12.3m at the end of January last, including cash at bank of €3.5m – a reduction on the €7.5m in cash at the end of January 2009.
The investors are charged 1% of the gross assets – investors’ money plus borrowings – as an annual fee.
The accounts show that the four directors, including Mr Hobbs, Vincent Regan, Hugh O’Neill and Dermot Flanagan, received an aggregate €146,671 in directors’ remuneration in 2009 – the same level as 2008.
The accounts show that a sister company with the same directors, Brendan Investments Property Management (BIPM) Ltd was paid €310,400 by BIPEP, inclusive of directors’ salaries during 2009.