Eddie Hobbs new Brendan Investments vehicle

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Brendan Burgess

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And today's question, with thanks to the Sunday Times: Who said:
what’s the point in helping consumers to drive down the drag effect of charges from 1.5% p.a. to, say, 1.25% p.a. through a huge effort by the Regulator if consumers take this cost saving and invest it in funds taking investment risk they do not understand, e.g. a leveraged or property fund with a high level of gearing in a marketplace about to face a significant property downturn and where there could be the complete loss of capital?


Most consumers haven’t a clue about what fund they are investing in or its relative level of risk.
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Duke of Marmalade

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Boss, I can't find that reference. Page?

Niall Brady has a piece okay pointing out very stark double standard by Hobbs - he warned againsts such schemes whilst preparing BI - unbelievable.

Brady also picks up the question of how much is BI going to raise?
Hobbs says "too early to know...we are were we wanted to be...we expect 90% in the last few days".

Where they wanted to be was 50M in total, expecting 90% to yet arrive suggests to me they have about 5M at this stage.

The Tribune takes up this speculation as a straight contest between the Senator and Hobbs and also incidentally mentions the Hydra. Who says journos are not influenced by AAM?:)
 

Sunny

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I loved EH's comment in the Sunday times where he says "I've made it clear this is for investors, not savers. Its impossible, though, to stop people making silkly decisions because they assume I've got some magic formula for making money".

Might I suggest to Eddie that it would have been possible if he didn't insist on being the face of this fund in every picture which was heavily publicised in the general media (including the late late show) knowing that he had a reputation of being a so called consumer champion. He chose to be the fore of this launch. He could have let the other directors do the publicity if he was wary of attracting the wrong type of investor.
 

Duke of Marmalade

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I loved EH's comment in the Sunday times where he says "I've made it clear this is for investors, not savers."
To be sure, that is a blood curdling warning which should see most people off. Better still would have been "It is for gamblers, not for...", but let's not be churlish.
 

Millix

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Richard Delevan's story in this Sunday's tribune 28-10-2007 also refers to AAM and BI hydra.

he must have been at a creative writing class last week - can anyone explain what is meant by "dozens of property mavens looking for kabuki theatre to leaven the bloody mess of Michael Lynn et al"

Kabuki is a form of traditional Japanese theatre. Kabuki theatre is known for the stylization of its drama and for the elaborate make-up worn by its performers.

a maven is one who is experienced or knowledgeable

leaven means to mingle or permeate with some modifying, alleviating, or vivifying element
 

Brendan Burgess

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Great. I thought I was the only one not to understand all those big words and their stringing together like that.

Brendan
 
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Ghodadaba

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"
Statement issued on behalf of Brendan Investments pan European property plc -

Brendan Investments extends investment deadline

31st October 2007 - Brendan Investments pan European Property plc today (Wednesday) extended its deadline for investment from 31st October to 30th November due to high levels of demand from both public and pension investors, and to tie in with the November pension deadline.

Vincent Regan, Managing Director of Brendan Investments, said: “At this point, the Company has exceeded its minimum subscription level of €10 million and is now in a position to commit to the purchases of commercial property upon which it has been working.” "
 

shanegl

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I thought they were aiming for 50mio, not "exceeding 10mio". What implications does this have for costs?
Seems very suspect that they've pushed the deadline and also increased the maximum investment amount.
 

ubiquitous

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I thought they were aiming for 50mio, not "exceeding 10mio". What implications does this have for costs?
Seems very suspect that they've pushed the deadline and also increased the maximum investment amount.
I suspect that the Brendan fund has flopped. A flop was always on the cards once they selected 31 October, the Pay & File tax deadline, as their subscription deadline. Their marketing guys must have been asleep when they picked this date. Either that or they were totally over-confident. Such apparent carelessness at this stage would imho not bode well for the eventual success of the fund.
 

Brendan Burgess

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Sounds like a serious flop. If they have raised only €10m, then the 750k in start-up costs represents an initial charge of 7.5%.

I wonder if those who have committed to the fund withdraw at this stage?

Brendan
 
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Insighter

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If the company believes it can raise more equity, ( the max is extremely high at €250m) by a one month extension it is reasonable for it to do so. In the interim it is unreasonable to expect it announce its running capital base given the number of people who wish it not succeed.

The set up costs are fixed at 1.5% equity raised subject to a cap of 750k which kicks in at 50m
 

Dman

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Hi Folks,
I rang one of the director's of the Brendan Investment as I had invested but not really happy that they have moved the end dates.
Gives me the impression that they have not raised near enough capital.
I was told you can get a full refund of your investment for the next 48hrs because they have moved the dates from the 31st of Oct to end of Nov.
 

Sunny

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If the company believes it can raise more equity, ( the max is extremely high at €250m) by a one month extension it is reasonable for it to do so. In the interim it is unreasonable to expect it announce its running capital base given the number of people who wish it not succeed.

The set up costs are fixed at 1.5% equity raised subject to a cap of 750k which kicks in at 50m
The 250m is the leveraged amount. They were looking for €50m capital.

Are you sure about the set up costs? My understanding is that it is circa €750,000 no matter how much money is raised which works out at 1.5% if 50m is raised but 7.5% if only 10m is raised. Check page 53 of the prospectus
 
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Insighter

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In newsletter on website, here is position;

The Directors confirm that the maximum deductions from all equity raised will be 1.5% representing the maximum capped set up costs at €750k as stated in the Prospectus for total equity raised of €50 million. For higher equity raised eg €100 million the effect of the cap is to drop this to 0.75%. For equity raised less than €50 million the set up costs will not be more than 1.5%. Therefore if you invest €10,000 the maximum deducted is €150 and will be lower if the total equity raised is over €50 million. This is used to cover all set up costs and professional fees. None of this money is paid to the Directors.

An extension is common for more equity but in the meantime the plc is up and running for existing shareholders. Will be interesting to contrast final results against other property schemes open over the same period.
 
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