Company linked to Eddie Hobbs hit by US water contamination costs

Investors in Brendan Investments Pan European Property (BIPEP), a fund associated with television personality Eddie Hobbs, took a hit of about €450,000 due to the 2014 Flint lead water crisis in Michigan in the United States.

Following the last financial crisis, Brendan Investments was one of the biggest buyers of seized an abandoned properties in the environs of the US city of Detroit. Flint is a nearby city that has experienced a major public health issue with contamination of its drinking water.

Accounts for 2014 filed by BIPEP this month show the company estimated the bill for “remediation works . . . concerning lead-based paint on all occupied homes” on the orders of local authorities.

Write-downs

The accounts show the company made a loss before tax over the year of €2.4 million, mostly due to write-downs in the value of its assets. The operating loss was about €2 million.

Net income almost doubled from €4.7 million to €9.2 million, although this was mostly down to cash raised from selling off much of its property portfolio. The accounts show it held €4.6 million of assets at the end of 2014, with total net assets for the company of €5.56 million.

A management company linked to some of the directors of BIPEP charged the group €183,000 for services over the year.

Mr Hobbs was a founder and promoter of BIPEP, and remains a shareholder, according to the accounts. He resigned as a director of BIPEP about 18 months ago, however, as he focused on his founding role in ill-fated political party Renua.

Brendan Investments was launched by Mr Hobbs and his co-founders in the dying days of the last boom, in 2007. He led a publicity drive for the fund, which at the time offered members of the public the opportunity to invest a minimum of €5,000.

The directors of BIPEP said they were “satisfied” with the investment strategy pursued by the group.

“The directors continue to explore opportunities for investment into the future with the aim of enhancing shareholder value,” they said.