Prindiville launches supercar mini-bond
Luxury car dealership Prindiville is launching a Luxury Asset Backed Mini Bond giving investors an opportunity to buy into the supercar market.
Chief executive 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 serves a global network of high net worth clients, securing rare supercars with significant investment potential, sometimes before they have been launched.
The asset-backed Prindiville Bond aims to provide investors a gross return of 7.5 per cent 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 GBP 50,000, especially those with a passion for luxury cars.
Investors who put in a minimum of GBP100,000 will have access to exclusive events at Prindiville’s London showroom and be able take part in track days.
The bond is secured against Prindiville’s stock, which is projected to exceed 120 cars. Around 20 of these will be in the GBP 200,000 to GBP 1 million price range, including rare exotica and special classics.
The business is planning to raise GBP 12 million 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.
The classic and sports car market has offered investors a 467 per cent return on their investment over a 10-year period, according to research by Knight Frank, outperforming all other equivalent asset classes, but the market is starting to plateau. Meanwhile, limited edition supercars such as the McLaren P1 – only 375 were produced – have more than doubled in value since launch and the P1 now sells for around GBP 1.7 million.
“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,” says 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.”