EDEN-Redruth Investment - Executive Summary

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.

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 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 later, through ELS Legal, Eden issued a Shareholders' Agreement for signature. Eden appears to believe this document retrospectively justifies their retention of a large portion of the tendered investment capital without the investors' knowledge or consent.

Having effectively crippled their own project by withholding almost one-third of the investment fund, Eden has found it impossible to resell the land for a sum that would satisfy the investors who had been led to believe that 98% of their capital was used to purchase land, as described in the prospectus.

The land remains unsold after five years. The investors have had no returns. Eden continues to present the investors with "options" based on the untruth that the acquisition cost was £2.2 million. The true purchase price was £1,475,000 and the true acquisition cost (purchase price plus fees and taxes) was less than £1.6 million.

Links to other pages:

Visual Summary  This page illustrates, in two simple diagrams, the great difference between the project that Eden promised and the project they actually carried out.

Open Letter to Directors  This page sets out in stark clarity the financial and ethical misconduct in Eden's management of the Redruth investment project. 

Detailed case study  This expands on the Executive Summary with full details of the Redruth project.

A typical investment  If you invested £100,000 what happened to your money?

Shares and Assets  This page clarifies the relationship between Eden Land Planning Ltd. and Redruth Eden Ltd. and differentiates more clearly between tangible assets and company shares. 

Redruth Eden Ltd - Accounts  The company accounts were never distributed to the Shareholders but they were filed at Companies House and are public domain. The accounts are 'tailored' to conceal the transfer of £661k from Redruth Eden Ltd. to Eden Land Planning Ltd.

The effects of inflation  The project was supposed to last 14 months. Now in its sixth year, inflation has become a major consideration.

Dramatis personae  This page introduces Eden's key players over the course of the project.

Locating Eden  Where does Eden Land Planning operate from?