International Property Finance With Wine-Backed Lending

• Client: Canadian-resident clients relocating to France
• Existing Property: Unencumbered South of France villa valued at approximately €2M
• Target Purchase: Family villa valued at approximately €5M
• Additional Asset: Substantial fine wine collection held in professional storage
• Solution: Cross-collateralised property and wine-backed financing structure

Relocating internationally while upgrading a property portfolio can be complex, particularly when significant assets are held across multiple jurisdictions. In this case, Enness advised Canadian-resident clients who owned an unencumbered villa in the South of France valued at approximately €2M. As they planned a permanent relocation to France, they wished to acquire a larger family villa with a target purchase price of around €5M, while preserving liquidity, flexibility and ownership of their existing assets.

Alongside their French property, the clients also owned a substantial fine wine collection stored in professional facilities. Rather than treating this solely as a passive holding, Enness identified that the collection could potentially form part of the wider financing strategy, subject to lender appetite, valuation and suitability.

One of the primary challenges was timing. The clients had not yet identified their future home but wanted greater clarity around their potential borrowing capacity before committing to a purchase. Many traditional lenders are reluctant to provide firm lending terms without a specific property identified as collateral. The objective was therefore to explore a structure that could provide an indicative framework in advance while retaining flexibility once the final property was selected.

Enness approached a range of specialist lenders and private banks to explore a flexible, forward-looking solution. The resulting structure combined potential cross-collateralisation against the existing French villa, lending secured against the wine collection, and a future mortgage facility to be considered once the new property was identified and approved by the relevant lender.

The unencumbered villa in the South of France provided a basis for the proposed structure. By taking a broader view of the clients’ assets, the bank was able to consider indicative terms while the clients continued their search for a new home. Once the eventual €5M villa was identified, the lender could assess how it might be incorporated into the wider financing structure, subject to valuation, underwriting and final lender approval.

The wine collection formed an additional element of the financing strategy. Enness identified a specialist lender experienced in lending against fine wine, allowing the collection to remain in its existing professional storage facilities. An independent specialist was engaged to inspect the collection, assess its condition and provenance, and provide information required for the lender’s due diligence.

The wine-backed facility provided an additional potential source of liquidity and formed part of the wider private banking strategy. The structure allowed the clients to explore using the collection as collateral without requiring an immediate sale, while the banking relationship was considered in the context of their broader financing requirements.

The structure was intended to allow the clients to utilise existing assets while retaining ownership of the property and wine collection, subject to the terms of any facilities ultimately agreed. The wine collection could remain in professional storage, while the existing property continued to form part of the clients’ wider asset position.

The resulting approach provided a potential financing framework for the acquisition of a new €5M villa. By combining real estate and alternative assets across jurisdictions, Enness was able to explore a bespoke structure aligned with the clients’ relocation plans, liquidity requirements and longer-term objectives, subject to lender approval and final underwriting.

This case demonstrates how access to specialist lenders and consideration of a client’s wider asset position can help address complex cross-border financing requirements. Where clients hold substantial property and alternative assets, specialist lending may provide additional routes to liquidity without necessarily requiring assets to be sold.

 

ENNESS DOES NOT PROVIDE ADVICE OR RECOMMENDATIONS ON LUXURY ASSET FINANCING, FINE WINE, INVESTMENTS OR ASSET VALUATION. LENDER INTRODUCTIONS ARE UNREGULATED. FINANCE IS SUBJECT TO ASSET SUITABILITY, VALUATION, LENDER CRITERIA AND INDIVIDUAL CIRCUMSTANCES.