Business

Monday 18 December 2017

AIB funded Redknapp's property splurge

Nick Webb

Nick Webb

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

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