Eden Land Planning - Case Study

If you invested £100,000, then, according to Eden Land Planning's prospectus: £1,786 would go towards Professional Fees, and £98,214 would be used to purchase land at Redruth, Cornwall. That is what you agreed to in July, 2018. What really happened to your £100,000 was more like this: £1,786 went on Professional Fees, and £2,823 went on Stamp Duty, £65,848 was used to purchase land, and £29,542 was retained by Eden without your knowledge. Remember, all this happened 2 months  before Eden asked you to sign the Shareholders' Agreement. If challenged, Eden will argue that, in signing the Shareholders' Agreement, you agreed that any surplus money after completion of purchase be transferred from Redruth Eden to Eden Land Planning. But, 2 months before the signature date of the Shareholders' Agreement, Eden's Lawyer, ELS Legal, had receipted your investment of £100,000 and told you by letter that "these monies" would be used to purchase land, (not two-thirds ...

(updated, February 2025) In June/July 2018, Eden Land Planning Ltd. raised £2.24 million from 22 investors on the strength of a prospectus document called the Investors Presentation. (from The Investors Presentation) The Investors Presentation falsely stated that the Acquisition Costs were £2.2 million.  Eden used only two-thirds of the investment fund to buy land, completing the purchase in July 2018. Eden and their lawyer, ELS Legal, led the investors to believe that the entire fund (except 2% fees) was applied to the acquisition of land at Redruth, Cornwall. The effect and purpose of grossly inflating the stated acquisition costs was to make available to Eden nearly one-third of the investment fund without the investors' knowledge (Best estimate, £661,750).  The investors were never informed of the true acquisition costs, nor the true purchase price, nor (of course) the large uninvested surplus. Two months after completion of purchase, through ELS Legal, Eden issued a Share...

I produced this document in March 2023. I am a private investor in the Eden-Redruth project. The document analyses the finances of the project and highlights Eden’s covert appropriation of a large portion of the investors’ tendered funds. Eden Land Planning Ltd. launched the project in 2018 but certain facts pertinent to this analysis did not come to light until February 2023, hence the late timing of the document.    Key Facts:  In 2018, Eden Land Planning Ltd. issued a prospectus called the Investors' Presentation against which they collected investment funds totalling £2,240,000. There were 22 investors.  The Investors' Presentation stated that the acquisition cost of the site at Redruth was £2,200,000 which included £40,000 for professional fees.  On completion of purchase, this would have left only £40,000 in the fund, of which £25,000 was pre-allocated for legal costs around the forward sale of the site. The investors were thus led to believe that approxim...