Eddie Hobbs new Brendan Investments vehicle

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Duke of Marmalade

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Boss, I think the answer to your question is that it is only the 12.5% Irish corpo tax that is at stake here, so not such a big deal. In short, I do think investing in a plc does involve a tax leakage of 12.5% of its profits. Other foreign taxes are probably neutral as to the legal vehicle selected.
 
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MMilken

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Hi Milken

You are missing the point that Harchibald is making.


If a pension fund invests in BI, BI will pay income tax and CGT and the pension fund will not be able to reclaim it.


So if you have a self administered pension fund and you want to allocate part of it to property, you should buy property directly or buy a pension fund. But you should not buy a plc to invest in property.
Seems like an invalid comparison.

Buying a property myself would involve me choosing the property - if I like the expertise of Brendan then I won't get this by buying property directly.

Sounds a bit like saying that an Investment Manager charging 1% is too high because I can buy the stocks and shares myself...not true though because I might be happy to pay for investment manager's expertise.
 

Brendan Burgess

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It is not invalid at all.

If you buy through a fund or through a plc, you pay management charges.

If you buy through a plc, you pay additional tax charges.

Brendan
 
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MMilken

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If you buy through a PLC you own shares in the company and have a say in how it is run.

Not so if you buy in to a property fund.

Apples are being compared with oranges.
 

Brendan Burgess

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What a ridiculous thing to say.

Brendan PLC will be taxed in the exact same way that other property companies (such as REITs would be taxed) - many people use their pension funds to gain tax-efficient access to a REIT, do they not?

Many pension schemes invest in quoted companies - do they not?

Just because the company is taxable does not mean the tax-efficiency of accessing it through a pension is lost.
We were dealing with your original point. Pointing out the tax advantages is not ridiculous.

There are other issues - but this does not affect the point which you made which was invalid.

Brendan
 

Duke of Marmalade

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If you buy through a PLC you own shares in the company and have a say in how it is run.

Not so if you buy in to a property fund.

Apples are being compared with oranges.
Of course they are, all we are saying is that the PLC Apple pays more tax than the Fund Orange, do you accept that MMilken?

I must say that whilst from time to time some stockbroker tries to convince me to buy some share or other, I have never heard it agrued as a reason that I will have a say in how the company is run.

Do you think having a say in how BI is run is a significant factor which potential investors should take on board?
 
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MMilken

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Brendan - I said it was taxed the same as other property companies...not property funds, so my point is correct.

Many people's pension funds invest in property companies - Brendan is a proeprty company.

I never said it was the same as a property fund.

Well harchibald - it's not a deciding factor when comparing one company with another (as it will equally apply in both cases) but it is a factor when comparing Brendan with a FUND.
 

Duke of Marmalade

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Okay, lets agree that the comparison is that a PLC pays an extra 12.5% corpo tax but in compensation you have a say in running the plc.
 

Duke of Marmalade

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However, Regan said that, under its prospectus, it could not give further information as to the level invested until the revised closing date of November 30.
We can be told that the fund is on target. We can be told that the 10M has been reached. We can be given a detailed geographical breakdown of investors.

But, Alas, the prospectus prevents us from knowing the most important info of all, HOW MUCH?

I see the Senator has struck punch number 4, though he has changed that photo to a much friendlier version.
 

Duke of Marmalade

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I see Eddie is given a free hand in Rossy's column today. Anybody get the whiff of legals here?

Eddie gives us a choice, we can either watch our assets gobbled up by oil-fed inflation and read about it "with our latte and croissant" or we can seek salvation in BI.

I doubt this will generate much take-up, for anybody who reads Rossy on a regular basis must surely be well frightened off.
 

Duke of Marmalade

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There has been consistent suggestion that this company was engaged in activity damaging to shareholder interests by you and a small number of other posters despite the facts to the contrary. Posting anonymously neither protects the poster or the website administrator.
"...engaged in activity..."

Wilkes, You make it sound like an accusation of terrorism or something, whereas we (the vast majority of contributors to this thread) have simply been pointing out the high costs and risks of this product being promoted to a mass market without any scope for independent financial advice.

I don't quite know who or what you are threatening. The most strident critic has been far from anonymous; are you suggesting the Boss should be consulting with his lawyer?
 

Sherpa

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Any news on Brendan Investments now that we've reached the closing date? Wonder how much was raised in the end.
 

Coordinated

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"We have a child . . . it's a little bit lighter than we expected but it has all its fingers and toes, " Hobbs said in Today's Sunday Tribune.
 

ClubMan

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zag

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I find the whole thing funny. Three short factual lines. Technically correct, but not exactly making the best use of the medium that is the internet.

z
 

Cantona7

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From this mornings fxcentre site...
Brendan Investments, the property fund set up by broadcaster and finance guru, Eddie Hobbs, has raised just E13m - far short of the E250m he had hoped to raise.
However, Brendan Investments said that it was pleased to have raised the E13m given the "testing" market conditions.
The company said it will set about building a E50m property portfolio.
Brendan was launched by Mr Hobbs in September. The other members of the board are the fund's managing director Vincent Regan, Hugh O'Neill, Pat Owens and barrister Dermot Flanagan, who was appointed the company's chairman.
The fund said that 700 people had subscribed for shares in company with an average of E19,000 each.
 
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