Art Backed Loan and Ibiza Property Equity Release for €600K Funding

Key Details:

• 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 €2.4 million Ibiza villa and art collection valued at approximately £800,000
• Loan Amount: Circa £600,000 combined art-backed and property equity release facility

An international property owner and art collector approached Enness Global seeking approximately £600,000 to fund urgent structural repairs and works to a luxury villa in Ibiza valued at circa €2.4 million. The property was unencumbered, while the client also held an art collection valued at approximately £800,000, 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.

Regulatory Notice

Asset-backed lending secured against specialist assets such as art may fall outside UK FCA regulation. Finance secured against overseas property, including property in Spain, may also fall outside UK FCA regulation. Regulatory treatment depends on the structure of the transaction, the purpose of the borrowing and the assets used as security.

Disclaimer

This case study is provided for illustrative purposes only and does not constitute financial, legal, tax, investment or currency advice. The client scenario has been anonymised and certain details have been generalised to protect confidentiality. Finance is subject to status, underwriting, valuation, asset suitability, jurisdiction and lender criteria. Loan amounts, loan-to-value ratios, lending structures and outcomes are indicative only and may vary depending on individual circumstances. Enness Global acts as a credit broker and not as a lender.

Risk Warning

Borrowing against assets carries risk. If the value of secured assets falls or repayment obligations are not met, additional security, partial repayment or the sale of pledged assets may be required. Borrowing secured against property also carries the risk of repossession if repayment obligations are not met.