- Client: International property owner and art collector
- Challenge: Raising urgent funding for structural works while preserving ownership of a luxury villa and art collection
- Asset Value: Circa €2.4M Ibiza villa and art collection valued at approximately £800K
- Loan Amount: Circa £600K combined art-backed and property equity release facility
An international property owner and art collector approached Enness Global seeking approximately £600K to fund urgent structural repairs and works to a luxury villa in Ibiza valued at circa €2.4M. The property was unencumbered, while the client also held an art collection valued at approximately £800K, with works located in both London and Ibiza.
The client wanted to access liquidity without selling artwork that formed part of their wider collection and long-term investment strategy. The requirement also needed to be addressed within a relatively short timeframe, while the use of multiple asset types across different jurisdictions added complexity to the lending structure.
The transaction presented additional challenges around the storage and valuation of the artwork. Certain pieces were held in London while others were located at the Ibiza property, meaning the lenders required appropriate arrangements for custody and security before the assets could be considered as collateral.
Enness Global introduced the client to specialist lenders able to consider both art-backed lending and property-based finance. The art-backed element was structured across two tranches, with the first secured against works held in London and the second against artwork transferred to approved storage in Ibiza. The London tranche provided an initial source of liquidity while arrangements for the remaining artwork were completed.
The balance of the funding requirement was structured through an equity release facility secured against the unencumbered Ibiza property. Combining the two facilities provided a coordinated approach to raising the required capital across the client's existing assets, subject to lender criteria and security requirements.
This case demonstrates how specialist asset-backed lending can provide alternative liquidity solutions for international clients with valuable property and art holdings. By combining different forms of security, Enness Global was able to structure a funding solution around the client's existing assets while allowing the underlying investments to be retained.
THE VALUE OF ART AND PROPERTY CAN FALL AS WELL AS RISE. BORROWING AGAINST THESE ASSETS MAY INVOLVE ADDITIONAL VALUATION, CUSTODY AND LIQUIDITY CONSIDERATIONS, AND FAILURE TO REPAY MAY RESULT IN THE LOSS OF SECURED ASSETS.
Information contained in our case studies is for market and illustrative purposes only. In some cases, these may be made up of multiple cases and are for illustrative purposes only.
Some case studies are made up of enquiries that have come into the business, not all business completes, and the posting of a case study does not represent a completed piece of business.
Property values can fall as well as rise, and you may not get back the amount originally invested. Property investments can be illiquid and may take time to sell. Where borrowing is used, your property may be repossessed if you do not keep up repayments on a mortgage or other loan secured against it.
