Art Radar Asia

Contemporary art trends and news from Asia and beyond

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    Art Radar Asia News conducts original research and scans global news sources to bring you selected topical stories about the taste-changing, news-making and the up and coming in Asian contemporary art.

Archive for the ‘Services’ Category

Art loans can offer liquidity to your collection

Posted by artradar on November 4, 2009


ART LENDING INDUSTRY: ARTTACTIC PODCAST REVIEW

On October 13th, ArtTactic published there latest edition of the ongoing podcast series dedicated to art market topics. The new podcast titled “Art Lending Industry is an interview with Andrew Rose, the president of Art Finance Partners based in New York City. Highlights from the interview include detailed information about the array of available loans through Art Finance Partners, Rose’s opinions about how the recession has affected art lending, and a status update on the current state of the art market.

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Art Finance Partners is a specialty finance company that provides innovative credit and advisory solutions to owners of "unconventional" assets, such as fine and decorative art, antiques and collectibles.

Types of Loans

“Bridge Loan to Sale”– Advance in funds against and art asset that will be sold. Used to get cash before sale transaction happens. The duration is typically 12-18 months with renewal provision.

“Acquisition Financing”- Upfront loan given to buy artwork, paid back overtime. Similar to real estate loan/mortgage.

“Working capital line”– Used by dealer or collector to finance inventory or collecting needs. The duration is 12 months with the option to renew.

The advantages to employing art loans to your personal art investment strategy are two fold. They offer liquidity between auction cycles (bridge loan to sale), and allow you to defer payment which frees up capital increasing yearly collection budgets (acquisition financing).

How the recession has affected art lending

When asked how the recession has affected art lending, Rose’s response was upbeat.

“Every business is facing the same liquidity crisis at the moment.” He continued to state, “we are seeing a fair amount of demand. Surprisingly in this market we haven’t seen the for-selling that one may have expected in this recession.”

How are artworks valued and has the current recession depreciated these values

Art Finance Partners utilizes basic valuation strategies when determining the value of the artworks lent upon. Their strategy consists of referencing established auction prices for comparable artworks through online databases like ArtNet or AskArt. In the case of a rare artwork, they consult their database of private sales, or get the opinion of an appraiser or art dealer.

Art Valuation Facts:

Loan to value ratio: 40-50%

General value of artworks down 20-30%; ultra contemporary artworks down 50%

Andrew Rose ends the interview stressing that good quality artworks sell well. Although trends and tastes change, Rose reiterates: “there will always be demand for very good quality international artwork on the international market.”

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SF/KCE

Posted in Acquisitions, Advisors, Business of art, Collectors, Interviews, Recession, Resources, Services | Tagged: , , , , , , , , , , | Leave a Comment »

Art in storage, at fairs and sales – is it getting harder to insure?

Posted by artradar on October 28, 2009


ART FAIR INSURANCE

Last week, The Art Newspaper posted an interesting report that claimed that art is getting harder to insure. According to their source, Richard Northcott, executive director of the art, jewellery and private client division at Heath Lambert Group (London), firms that protect specialist fine art insurers are becoming cautious of insuring a large amount of art kept in one place at the same time, such as in storage warehouses and exhibitions. The article explains why:

“For a long time nobody in the insurance world was monitoring the cumulative value of art shown at fairs or kept in storage,” explains Northcott. “But in the last two or three years the industry has become a lot more sophisticated and a lot more aware of the issue.”

This is partly owing to 9/11 and Hurricane Katrina in 2005, which made insurers aware that a single catastrophe could wipe out an entire art fair or storage facility, and partly owing to recent developments in software that have made it much easier for re-insurers and specialist fine art insurers to track the location of the thousands of policies they have underwritten at any one time.

At Art 40 Basel in June, “there were already murmurs of a problem”, Northcott says.
At Art 40 Basel in June, “there were already murmurs of a problem,” Northcott says.

“There is a limit to the insurance market’s capacity for the cumulative value of policies for a single event like an art fair,” says Northcott. This stands at around $2bn; the insurance value of art at Frieze this year is much lower as the downturn in the contemporary market has led to declining prices, and the many younger galleries exhibiting for the first time are offering less expensive, emerging artists. But he believes that as the art market recovers, “all major art fairs will come under scrutiny by the industry”.

RM/KE

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Posted in Art insurance, Business of art, Fairs, Services | Tagged: , , , , , , , , , , | 1 Comment »

Top 5 sites for Japanese contemporary art news by Matthew Larking

Posted by artradar on June 24, 2009


JAPAN ART READING

What are the top sources of information about Japanese contemporary art?

The Japanese art scene can seem impenetrable to non-Japanese speakers and yet, despite  this, there is a growing swell of global interest in contemporary art from Japan. There are several potential reasons:

  • Takashi Murakami, who has probably done more than any other artist ever to make contemporary art accessible. He has been astonishingly effective in widening the market for and interest in contemporary art globally;
  • the maturing of the art scene in Tokyo which has seen a new group of galleries open in the last fifteen years;
  • the wave of interest in manga and video games, spawned in Japan, which has swept across the world;
  • the ‘separateness’ of Japan whose monoracial, monolinguistic island society has developed its own cultural idiosyncrasies, creating ripe ground for art with a fresh perspective.

So what is the best way to keep abreast of art news in Japan? We asked lecturer and, since 2002 Japanese Times art critic Matthew Larking, to give his recommendations about what to read to keep up to date.

1. Tokyo Art Beat –   www.tokyoartbeat.com – “gives updates and everything else on the Tokyo art scene”

From the website: “a bilingual art and design events guide which offers event listings, reviews and a shop. The site is updated daily and lists more than 500 current & upcoming art events, at any moment. Smart data organisation with events sorted by media, schedules, and location, as well as event lists like Closing soon, Most popular, Open late, and Free. Available via any PC or mobile phone.”

2. ARTiT –  http://www.art-it.jp/e_index.php – “the ARTiT site has a few good interviews and bits and pieces here and there”

From the website: “a visually oriented, all bilingual (Japanese and English) quarterly magazine introducing the latest trends in the contemporary art scenes of Japan and the rest of the Asia-Pacific region. ART iT features comprehensive interviews with topical artists, in-depth articles on current art-related subjects, and detailed information on exhibitions at top museums and galleries throughout Asia-Pacific.”

3. PING MAGhttp://pingmag.jp/ – “now defunct but with some good archives is PING MAG which introduces a few artists who don’t get so much press in the usual places”

4. Japan Timeshttp://www.japantimes.co.jp/entertainment/art.html “the Japan Times does a full page dedicated to the Arts every Friday, the only newspaper in Japan to do so and many of the writers are very good”

5. Artscape Internationalhttp://www.dnp.co.jp/artscape/eng/

From the website:  “a monthly English web magazine for readers both inside and outside Japan, but especially overseas, with an interest in Japan’s art scene and artists. With one of Japan’s most comprehensive art databases, Artscape compiles up-to-date information about art events throughout Japan, presenting reviews of exhibitions and articles about art trends and artists.”

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Posted in Japan, Japanese, Manga, Overviews, Resources, Services, Takashi Murakami | Tagged: , , , , , , , , , , , , , , | 1 Comment »

Unusual art investment model launched by China Merchants Bank

Posted by artradar on June 18, 2009


ART INVESTMENT

Earlier this week China Merchants Bank  launched a new ‘art banking’ service for China’s rich says the People’s Daily Online.  The unusual model allows private banking clients to pay a deposit for an artwork and take it away to enjoy for one year after which they have the option to purchase it or return it for a full refund.

“The model is brand new in China, as art investment often involves great risk and wealthy people need time to understand Chinese contemporary art,” said Cai Can huang, deputy general manager of CMB’s private banking section.

Private clients with assets of more than ten million yuan will be targeted by the fund, who is working in collaboration with the China Contemporary Art Foundation which has amassed a collection of over 3000 Chinese contemporary works.

 

Su Xinping, Sea of Desire

Su Xinping, Sea of Desire

“We have worked with a group of Chinese and Western art experts to pick out seventy artworks including photos, oil paintings, wash paintings and sculptures, ranging from 10,000 to one million yuan,” said Su Yan, executive director of China Contemporary Art Foundation. 

We are curious about this bizarre art investment model. It is one thing to loan art for free to wealthy clients: luring and cementing relationships with high net worth individuals who will be upsold other high-return products.

But surely it is another thing altogether to offer the reward of potential gains without any of the risks. As the wealth levels of the targeted clients are merely mass affluent rather than mega-rich, and are therefore unlikely to produce sufficient returns on other product sales, one can only assume that the lenders are pretty confident that there will be no (or minimal) gains after a year.

One is left musing… Does this say something about the outlook for the contemporary Chinese art market? Is there perhaps an issue with the quality of the artworks selected? Not the latter, we hope, as this initiative could, now that the market has been decimated by the withdrawal of speculative purchasers, play a much-needed part in stimulating engagement with art which in turn just might help spawn a serious local collector base in China.

Read more at CMB Launches Art Banking in China – Peoples Daily June 10 2009

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Posted in Collector nationality, Collectors, Services | Tagged: , , , , , , | 1 Comment »

Artprice launches web-based art collection management and valuation service free to subscribers

Posted by artradar on February 17, 2009


ART MANAGEMENT  VALUATION

Free asset valuation and management tools are ubiquitous in the financial sector and it was just a matter of time before similar offerings were released by art service companies.

Artprice offers automatic valuations of collectors’ portfolios using a tool which draws prices from its database. It remains to be seen how well this works as credible valuations of comparatively illiquid and non-homogenous art assets require judgment which, one would imagine, is beyond the capabilities of technology. But we are ready to be wrong. If any readers have tried the service, feel free to leave your comments below.

From the press release:

Artprice launches My Art Collection, the first free and confidential art portfolio management service. This service, now available to Artprice’s 1,300,000 subscribers is available…for professional or amateur art collectors anywhere in the world. However much you spend on art, the value of your collection is evolving at an ever-faster pace as the art market becomes increasingly sensitive to economic and geopolitical events. With Artprice’s unique and free service My Art Collection, you can follow the value evolution of your collection as a whole with regular revaluations for each of the works in the portfolio.

Using a simple tool that takes full advantage of Artprice’ knowledge in the sector as world leader in art market information, collectors can follow the financial value of their works and their portfolios at just a glance.

This exclusive service enables Artprice subscribers to take full advantage of their immediate access to Artprice’s leading standardised marketplace and to buy or sell elements in their collections in reaction to market fluctuations.

Moreover, in just a couple of clicks, Artprice subscribers can access the pay-service Artpricing: within 48 hours, our analysts (art historians, professionals and econometricians) can provide updated valuation of works. Artprice subscribers can also access the Artprice databases which contain more than 25 million auction results, indices and price statistics for over 405,000 artists.

In addition, this portfolio valuation service will give our subscribers access to online insurance services with quotes calculated in real time by Artprice and its art insurance partners, thereby accelerating the notion of an immediate financial guarantee of their works.

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Posted in Art Index, Collectors, Market watch, Services | Tagged: , , , , , | 1 Comment »