Revolutionary scheme to invest in Supercar market launched
Luxury car dealership Prindiville plc is launching a mini-bond to expand its business, giving investors a rare opportunity to buy into the supercar market.
Chief executive and supercar hunter Alex Prindiville, who has more than 20 years of experience in the industry, is raising capital to acquire stock of sought-after supercars and classic cars, including iconic brands such as Ferrari, Lamborghini, McLaren, Porsche, Rolls Royce and Maserati.
From its London showroom, Prindiville plc serves a global network of High Net Worth clients, securing rare and desirable super cars with significant investment potential, sometimes before they have even been launched.
The Asset-Backed Prindiville Bond aims to provide investors a gross return of 7.5% per annum, paid every six months, with a return of their capital at the end of the five-year term. It has been designed for sophisticated investors with a minimum investment of £50,000, especially those with a passion for luxury cars. Investors who put in a minimum of £100,000 will have access to exclusive events at Prindiville’s London showroom and be able take part in track days, experiencing the thrill of driving the world’s most sought-after super cars.
The bond is secured against Prindiville plc’s stock, which is projected to exceed 120 cars. Around 20 of these will be in the £200,000 to £1m price range, including rare exotica and special classics, which offer the highest profit margins.
The business is planning to raise £12m from the mini-bonds and terms have been agreed in principle to move to a new, larger showroom once sufficient profits have been achieved from the business. Some of the stock will be selected to offer conventional near-term returns, but a significant percentage will be targeted for medium to long-term investment potential.
Alex will shortly present Sky’s Supercar Megabuild second series on TV where ordinary cars are transformed into supercars.
The classic and sports car market has offered investors a 467% return on their investment over a 10-year period, according to research by Knight Frank, out-performing all other equivalent asset classes, but the market is starting to plateau. Meanwhile, limited edition super cars such as the McLaren P1 – only 375 were produced – have more than doubled in value since launch and the P1 now sells for around £1.7m.
‘The UK and global luxury markets have been both my workplace and passion for over 20 years and I have amassed enormous experience in identifying the potential investment opportunities and where to go to acquire them,’ said Mr Prindiville.
‘At the heart of the Prindiville proposition is our ability to identify and then source cars that will be in high demand, often at significant discounts to their market value. Our investors will be supporting a new and innovative British company.
‘The demand is outstripping what I can keep up with. I am turning business away because I haven’t got the capital.”
Mr Prindiville, 42, decided to launched the bond after a wealthy client expressed an interest in investing in the company and suggested he create a suitable structure that was safe enough to allow him to do so.