It is estimated that wine has increased in value by c.127% in 10 years, making it a strong option for investors looking for alternative growth opportunities.
Luxury asset lender Suros Capital has completed a short-term loan of £100,000 against a wine collection, with the client using part of it as security to borrow funds to invest in more fine wine.
It is estimated that wine has increased in value by c.127% in 10 years, making it a strong option for investors looking for alternative growth opportunities.
The wine used as security is stored in a UK based bond facility and includes a case of Petrus 1982 valued at £42,000 and one of Romanee-Conti valued at £16,000 per bottle.
Storing wine ‘under bond’, defers payment of excise duty and VAT, until it is removed. So, once the stock was examined and moved to the ownership of Suros Capital, funds were released to the client.
Charles Hodge, business development director at Suros Capital, said, “The client wanted to retain his investment whilst freeing up funds for further upcoming wine purchase opportunities as he saw more growth potential in his specific wines.
"For those interested in collecting, auction sales are facilitated when goods, such as wine, is held in bond under this regime, as stock does not have to be moved – a change in ownership is simply notified to the bond facility for the transaction to be completed.
"We have a number of clients using our service to raise funds against their fine wine collections, which represent excellent long term investment opportunities with no tax implications for the owners, who can leverage their asset without attracting any capital gains penalty.”
