Art Radar Asia

Contemporary art trends and news from Asia and beyond

  • Photobucket
  • About Art Radar Asia

    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.
  • Advertisements

Posts Tagged ‘art recession strategies’

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.

logo

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.”

Related posts:

Subscribe to Art Radar Asia for more market and auction house news

SF/KCE

Advertisements

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

Three recession strategies for selling art in Shanghai – Shanghai Daily

Posted by artradar on April 20, 2009


CHINESE ART MARKET

Art galleries are hooking up with hotels, art projects are on hold, and artists are printing fine art onto silk scarves. Just about everyone in the art world is compromising in the economic downturn, reports Wang Jie for the Shangai Daily.

ShContemporary art fair

There’s speculation that ShContemporary will take a break this year but this has not yet been confirmed and the fair began active media promotion last month.

“No comments, but more details will be given later,” says Gu Zhihua, director of the organizing committee of Shanghai Art Fair, and the Chinese partner of ShContemporary.

Last month, Gu and his team began media promotion and planning for the 2009 Shanghai Art Fair scheduled for September at ShanghaiMart – a half year earlier than usual.

“We will try to find buyers for galleries coming to our fair,” says Gu tersely. “The size of the fair won’t be reduced, it still covers 24,000 square meters.”

 Galleries partner with hotels

Dealers are making moves to show their works in hotels including the Hilton, Renaissance and 5 star Shanghai Xijiao State Guest House to broaden exposure to their works and attract new buyers.

“A five-star hotel could be a helpful venue,” says Zhang of Simply Noble Gallery. “I want to give more exposure to the art in my gallery instead of locking them in the warehouse” due to hard times.

 He might be onto something. Hotel guests are mainly businessmen and tourists who aren’t visiting to satisfy their aesthetic sense, but a picture might just catch their fancy.

At the Hilton, enquiries have already been made about some of the works on show from their local gallery partner.

Cheaper products

The Hilton Shanghai has also developed some art side-products, such as postcards and albums. Other art products being sold by artists in Shanghai include art dolls, limited edition silk screen prints and scarves.  

For full article read Shanghai Daily: Can’t afford a multi-million yuan canvas? How about a silk scarf? Apr 2009

Related posts:

Subscribe to Art Radar Asia for the latest news about the art recession in Asia

Posted in Fairs, Galleries, Market watch, Recession | Tagged: , , , | 1 Comment »