International Property Finance With Wine-Backed Lending

Key Details:

• Client: Canadian-resident clients relocating to France
• Existing Property: Unencumbered South of France villa valued at approximately €2 million
• Target Purchase: Family villa valued at approximately €5 million
• 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 €2 million. As they planned a permanent relocation to France, they wished to acquire a larger family villa with a target purchase price of around €5 million, 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 strong foundation for the proposed structure. By taking a portfolio-level 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 €5 million villa was identified, the lender was able to assess how it could be incorporated into the wider financing structure, subject to valuation, underwriting, and final lender approval.

The wine collection proved to be an important 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. This avoided unnecessary logistical complexity associated with relocating the assets. An independent specialist was engaged to inspect the collection, assess its condition and provenance, and provide the information required for the lender’s due diligence.

The wine-backed facility provided an additional source of liquidity and formed part of the wider private banking strategy. The structure enabled the clients to utilise existing assets without requiring an immediate sale of the collection, while the banking relationship was developed around their broader financing and wealth requirements.

Crucially, the structure enabled the clients to leverage existing assets without compromising ownership or enjoyment. Their property remained in place, while the wine collection continued to be professionally stored and managed. Rather than selling assets or disrupting their wider wealth planning, value could be unlocked in a controlled manner, subject to the terms of the relevant facilities.

The resulting approach provided a flexible financing framework for the potential acquisition of the new €5 million villa. By combining real estate and alternative assets across jurisdictions, Enness was able to develop 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 creative structuring, access to specialist lenders, and a holistic assessment of a client’s balance sheet can help address complex cross-border financing requirements. Where clients hold substantial property and alternative assets, specialist lending can provide additional routes to liquidity without necessarily requiring assets to be sold.

Important Information

Enness does not provide advice on Luxury Asset Financing, and lender introductions are unregulated. Enness does not provide investment advice or recommendations in relation to fine wine or other investments. Clients should seek independent legal, tax, financial, and specialist asset advice before entering into any financing arrangement.

Risk Warning

Borrowing against assets carries risk. The value of fine wine and other alternative assets can fall as well as rise, and such assets may be illiquid and difficult to sell quickly. Where assets are used as security for borrowing, a fall in value or failure to meet repayment obligations may result in additional collateral requirements or the sale of secured assets. Clients should ensure they understand the risks and repayment obligations associated with any facility before proceeding.

Disclaimer

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