High Yield ‘Buy to Rent’ Art for Income

An introduction to the ‘Buy to Rent’ art market.

Art for income

Examples and market histories compared

Getting started

How to build a successful high yield ‘Buy to Rent’ art portfolio in 3 easy steps.

More...

Discover the art market through Collins & Kent International

01. 02. 03. 04.

A brief introduction

Artworks from the world’s most desired artists

Collins & KentInternational Fine Art

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F I N E A R T F O R E V E R Y O N E

Offering balance, potential capital growth and insulation from the ups and downs of the stock markets, a high yield ‘Buy to Rent’ art portfolio can give the reliability and reassurance of a property based portfolio, at a fraction of the cost.

Leveraging the power and experience of our dedicated corporate art rental business, CKI Fine Art Rental, we can offer artworks with contracted rental yields and terms, so you enjoy immediate monthly returns of 7.5% pa. With high yield ‘Buy to Rent’ portfolios starting from as little as HK$ 30,000, and zero upkeep costs, all you have to do is decide on your budget.

Why not art?You buy property to rent.

Contracted monthly rental income of 7.5% pa

Published histories of price growth

An ideal opportunity for portfolio diversification

High yield portfolios starting from HK$ 30,000

The reliability of a property investment with zero maintenance costs.

01 A brief introduction 1Collins & Kent International - Introductory eBrochure

53% of wealth managers say that tough economic conditions have motivated their clients to include art in their overall wealth portfolio’s.

(Up from 28% in 2011)

The Deloitte ArtTactic Art and Finance Report 2013

02 Art for income

Art for income

Comparison of a high yield ‘Buy to Rent’ art portfolio and gold

Covered in the following sections:

01.

02.

Our area of specialisation

We specialise in an area of art called ‘works on paper’. This category is not only the most liquid and affordable, starting from as little as HK$ 30,000, it also includes artists that are

either deceased, non-producing or approaching the end of their careers such as Pablo Picasso, Damien Hirst and Henri Matisse. This unique diminishing asset is protected with museum grade conservation framing, which when combined with comprehensive insurance cover, gives the owner a secure package to offer for rental.

Art for income overview

Historical price appreciation

03.

Romero Britto’s Asia Pacific I and Sir Peter Blake’s Far East Suite and 8’s, produced exclusively for Collins & Kent Internatonal

Works on paper - A unique diminishing real asset

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Gold vs Art comparison

Like gold, the works of the Masters are considered a ‘safe-haven’ and are therefore sought after even in unstable economic times. As such many now consider art as an essential part of a diversified portfolio, giving balance, stability and the security of a real asset.

A ‘safe haven’

01.

02 Art for income

historic yearly growth historic yearly growth4.09%

Gold ArtAndy Warhol

4.09% 16.18% + 7.50%

23.68%

1983 average price: US$ 424 per oz1

1983 - 2013Grace Kelly 1983 - 2013

1 Prices from 1983-2013, Kitco.com, based on the London PM fix. 2 The Economic Times. Bennett, Coleman & Co. Ltd. 3 The Printworld Directory 2013.

Predicted Compound Annual Growth (2013 forecast average price:

US$ 1410 per troy oz)2

Historic price growth (2013 Retail Value

US$ 90,000)3

Contracted rental income

1983 Issue Price: US$ 1,000

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The rise of fine art as an asset class has been driven by the

globalisation of the market and the availability of up to the minute research. The wealth of art market data and specialised research available today enables collectors to accurately track the general market and its constituent parts against other alternatives.

As with most markets art can be broken down into several key

areas, of which we focus on an area called ‘works on paper’. As all of our artworks come with recorded price histories, you are able to make informed decisions when purchasing art for income. Below are just two examples from both ends of the spectrum with Picasso’s ‘Apples, Glass and Knife’ and Andy Warhol’s iconic ‘Marilyn Monroe’.

Historical price appreciation02.

02 Art for income

Andy Warhol’s Marylin Monrow F/S II.31. 1967

Issue price (1967) ............................................................. US$315

1981 ................................................................................ US$96,000

2007 ............................................................................. US$229,000

Today ............................................................................ US$477,000

Historic price gowth: 16.6%

Total income generated from a 2 year rental contract yielding 7.5% PA: US$71,550*

Pablo Picasso’s Apples, glass and knife (1947)

2008 ............................................. US$4,000

2010 ............................................. US$5,000

2013 ............................................. US$8,500

Historic price growth: 16.27%

Total income generated from a 2 year rental contract yielding 7.5% PA: US$1,275*

*Based on 2013 Printworld Directory RRP of US$ 8,500 *Based on 2014 AmfAR auction price of US$ 477,000

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2006 .....................................................

2008 ...................................................

2013 ...................................................

Unique diminshing asset

Throughout their lifetime artwork editions naturally decrease in numbers due to poor care, inadequate protection against aging

or being lost. As this happens the remaining mint condition examples become increasingly rare and sought after, and as our example illustrates, this sometimes triggers significant increases in the value of the artwork.

$

$ $ $

$ $ $ $ $ $ $ $ $US $55,000

US $135,000

US $275,000

*Figures based on RRP - Printworld Directory 2006, 2008 and 2013.

Works on paper - A unique diminishing real asset03.

Pablo Picasso - Jaqueline in Right Profile 1958 - Original edition size of 50

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Consistent demand

Many artists experience consistent demand from collectors. By working with established artists with strong histories of price growth we can

draw on a wealth of statistical data and market trends.

End of 2011 ...................................................

Beginning of 2014 .........................................

Historic price growth: 15.1%*

Total income generated from a 2 year rental contract yielding 7.5% PA: US$ 637.50**

US $3,208

US $4,250

*Figures based on 2011 Collins & Kent International and 2014 Rogallery New York retail prices. **Based on today’s RRP of US$ 4,250.

Works on paper - A unique diminishing real asset03.

George Condo - More Sketches of Spain for Miles Davis #7 - 1991

Demand for George Condo

900%

Auction volume and lot turnover

Growth trend

0%

2000 20122006

Year

100%

% of year 2000

auction volume and lot

turnover

02 Art for income 6Collins & Kent International - Introductory eBrochure

Getting started is a simple and straightforward process. Our art consultants can give personalised guidance and advise you on every aspect of the rental and retail markets.

Three simple steps to creating a high yield ‘Buy to Rent’ art portfolio

Discuss budgets and income objectives

Enjoy your fine art collection

To fully understand and meet your needs, your CKI Art Consultant will discuss and analyse your objectives and budget before any recommendations are made.

We cater for all types of collector, from those looking for long term income streams, to those that also wish to enjoy their art collections by switching the artworks they offer for rental at the end of each rental cycle.

With your personalised portfolio of artworks selected, you can sit back and relax with immediate rental returns of 7.5% pa. All of our artworks are fully insured, protected by museum grade conservation framing and professionally installed, so you never have to worry about maintenance or upkeep costs.

Artworks are widely regarded as an appreciating asset and have the potential for significant increases in value over time.

Speak with a specialist art consultant

A dedicated CKI Art Consultant will guide you through the various income options available to you. There will be an opportunity for a personal tour of our gallery where you can learn more about the processes involved in the creation of the artworks, their histories and their rental potential.

03 Get started 7Collins & Kent International - Introductory eBrochure

For personalised advice and guidance a private consultation allows you to go into more depth about your individual objectives and requirements.

If you are interested in finding out more about how a high yield ‘Buy to Rent’ art portfolio can work for you, please contact us for more information or a free consultation.

Alternatively we also offer art educational seminars at our central Hong Kong gallery. These seminars, held in a relaxed and informative environment, give a broad overview of the art market and can be the perfect introduction to this exciting new opportunity.

Discover more...

Arrange a free Attend an

private consultationart education seminarInformative and informal, an art education seminar is the perfect introduction to the rapidly expanding art market.

Events are held monthly and dates are arranged based on interest. If you would like to attend please contact us for scheduled dates.

+852 3695 5200 +852 3695 5200

enquiries@collinskentint.com.hk enquiries@collinskentint.com.hk

@ @

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F I N E A R T F O R E V E R Y O N E

Hong Kong

Collins & Kent International Ltd Suite 2301-3 Kinwick Centre 32 Hollywood Road Central Hong Kong

Tel: 3695 5200 lnt: +852 3695 5200 Fax: +852 3909 1563

Australia

Collins & Kent International Pty Ltd Level 8 350 Collins Street Melbourne VIC 3000 Australia

Tel: 1300 66 35 56 lnt: +61 3 9014 8420 Fax: +61 3 8678 0600

Singapore

Collins & Kent International Pte Ltd 16 Raffles Quay #33-3 Hong Leong Building Singapore 048581

Tel: 3157 1690 lnt: +65 3157 1690 Fax: +65 6725 8471

www.collinskentint.com

Collins & KentInternational Fine Art

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Collins & Kent International Limited (“CKI”) and its employees may from time to time provide information about artworks. Even though CKI obtains such information from reputable sources, such as the Print World Directory, markets and prices can change, and past trends may not be continued or repeated. CKI does not independently verify such information and disclaims any obligation to do so. CKI cannot guarantee such accuracy or completeness and

accepts no responsibility for any loss arising from any use or reliance on such information. Such information is provided on an “as is” basis for personal information purposes only, and is not intended as investment advice.