Detroit: Eddie Hobbs-founded fund forfeits scores of houses
Investments firm also dragged into row over lack of heat at apartment block it rents ouhttp://www.irishtimes.com/business/comp ... -1.2935207
Brendan Investments Pan European Property (Bipep), the fund co-founded by television personality and financial adviser Eddie Hobbs, has had scores of houses it owns in Detroit seized by local authorities over unpaid property taxes.
The fund raised almost €13 million from Irish small investors at the end of the boom, and initially invested in Germany before moving into the risky Detroit abandoned homes market in 2012. The Irish Times recently revealed that angry investors have been told by Bipep they are likely to lose 90 per cent of their cash.
Seizure records from the treasury authorities in Wayne County, Michigan, show the extent to which the fund’s investment strategy in Detroit has blown up in investors’ faces.
The latest seizure list, published about two weeks ago, details 80 Bipep properties, purchased through its US subsidiary Artesian Equities, which have been forfeited for non-payment of taxes....
...Mr Hobbs, who fronted the scheme’s public fundraising in 2008, stood down as a director of Bipep two years ago and sold his shares in the management company. He retains a 4.5 per cent stake in Bipep and is on course to lose most of the estimated €450,000 he personally invested.