Former Eddie Hobbs promoted company goes into liquidation
A liquidator has been appointed to Brendan Investments Property Management, a company that was set up to manage Brendan Investments Pan European Property plc (BIPEP), the high profile investment company whose original promoters included financial adviser and TV personality Eddie Hobbs.
BIPEP went into liquidation in July, leaving 700 investors nursing losses.
New papers filed with the Companies Office show that Ultan McCarthy of McCarthy & Co in Dublin has been appointed liquidator of the separate firm Brendan Investments Property Management Ltd (BEPM), a related business with separate owners that was established to manage the funds raised in 2007. The directors of BEPM, Hugh O'Neill and Vincent Regan, were also the directors of BIPEP.
Mr McCarthy was named liquidator of BEPM on October 25, following a meeting of creditors at the Carrigaline Court Hotel, Main Street, Carrigaline, Co Cork.
The most recently filed accounts for BEPM are for the 12 months to August 31, 2016, and show it had investments valued at just over €350,000, largely consisting of the then value of shares in BIPEP.
The accounts show that BEPM was paid €145,000 by BIPEP in the year to the end of August 2016.
Under the structure of the original Brendan Investments, the Property Management company was separately owned by the original promotors of the larger fund, and was paid an annual fee of 1pc of the value of BIPEP assets. From the time the fund was raised in 2007 until this year's insolvency those fees are understood to have totalled around €2m.
Two of the original directors, Eddie Hobbs and Dermot Flanagan, stepped down from BEPM in 2014 and subsequently also stood down as directors of BIPEP.
In July, the main Brendan Investments Pan European Property was wound-up on foot of a petition to the High Court, owing more than €11m to around 700 Irish investors, who had pumped €12.6m into the business in 2007 in one of the biggest ever fund raisings of the kind here.
The original plan was to invest in a mix of European property over a 10-year period.
In the end, BIPEP lost most of its investors' money in failed property investments in Detroit, USA, and in Germany. It had assets of just €91,000 when it was wound up.
Aidan Garcia Diaz, of Collins Garcia, is overseeing the liquidation of BIPEP.