AIB funded Redknapp's property splurge
Published 12/02/2012 | 05:00
AIB helped bankroll Tottenham manager Harry Redknapp's disastrous property splurge in Portsmouth, the Sunday Independent has learnt.
Redknapp borrowed up to €9.6m from AIB's UK operations in August 2007 to help finance a speculative property development scheme on the seaside in Bournemouth.
Along with his partners, Redknapp bought a derelict apartment block and seafront land with the intention of developing a €11m scheme, including 92 apartments and a Tesco store.
He put up part of his €12m-valued Dorset home as security for some of the loans. Two companies associated with Redknapp -- Pierfront Developments and Redsouth -- both took out mortgages with AIB (UK) in summer 2007 while he was still manager of Portsmouth Football club.
Company filings show that Pierfront had creditors of €7.05m at one stage. Redsouth had creditors of about €2.55m. Both loans were paid off in September 2010.
Initially profits for the scheme were forecast to hit nearly €5m but the slowdown in the British economy put paid to Redknapp's ambitious property scheme.
The site has been put on the market with a price tag of close to €5m.
Sunday Indo Business