Acquisition of distressed properties in Detroit nets Hobbs’ firm €1.2m

The investment firm set up by consumer advocate Eddie Hobbs has recorded an immediate €1.2m gain from its investment in one of the least fashionable addresses in the US — Detroit.

The €1.2m gain from the purchase of distressed residential properties in the Detroit region contributed to pre-tax profits at Hobbs’ Brendan Investment Pan European Property rising 14-fold to €888,863 in the 12 months to the end of 2012. This followed a pre-tax profit of €60,562 in the 11 months to the end of December 31, 2011.

According to the directors’ report attached to the Cork-based firm’s accounts, the distressed US properties were purchased in 2012 by the group’s US investment entity, Artesian Equities. The cost of the acquisition was €4.56m.