Eddie Hobbs’ firm in the red to tune of €2m
Cork-based Brendan Investment Pan European Property (BIPEP) plc recorded a profit of €481,815 in 2012. The loss in 2013 — just revealed in new accounts filed — represents a negative swing of €2.6m.
The reversal in fortune for the property firm will disappoint the hundreds of people who each invested €5,000 and more in the firm after its much publicised launch . The subsequent crash in the property sector resulted in the firm raising only €12.6m from investors through a public round of funding.
Mr Hobbs resigned as a non-executive director in March as a result of his appointment as president of political party Renua, but he remains an active shareholder and is listed as having 9,533 shares in the firm.
The profit in 2012 arose mainly from a €1.2m gain from the firm buying distressed residential properties in the Detroit region.
The group made an initial investment of €4.56m in its Detroit venture with the group aiming to realise inbuilt value within the properties acquired through a careful programme of refurbishment and disposal.
Now, the 2013 accounts show the loss was sustained after a write-off of a customer receivable balance of €1m was recorded and a foreign exchange loss of €263,849.
The value of the firm’s net assets reduced from €9.35m to €7.2m. The firm’s cash pile during the year fell from €289,910 to €80,772.
