Facebook Instagram Linkedin Twitter Youtube
Home Blog Page 11155

LT Group sets aside up to P11B for capex this year

By Arra B. Francia, Reporter
LT GROUP, Inc. (LTG) plans to spend P10-11 billion for capital expenditures in 2018, the bulk of which will be allocated for its property unit in a bid to expand its recurring income.
The holding company of tycoon Lucio C. Tan, Sr. has allocated P3 billion for Eton Properties Philippines, Inc. (EPPI) this year.
“It’s just a steady building up of our recurring, rental portfolio which is offices and commercial establishments… We are hopeful that BPO (business process outsourcing) will still be strong enough in the coming years,” LTG President Michael G. Tan said in a press briefing after the company’s annual shareholders’ meeting in Century Park Hotel in Manila yesterday.
EPPI will be opening its fifth BPO tower in Centris, Quezon City this year, adding more than 20,000 square meters (sq.m.) of leasable space to its portfolio. The company currently has 140,000 sq.m. of leasable space under its network.
The company is currently constructing Eton West End in Makati City, which will feature a BPO office on top of a retail mall. In Ortigas Center, EPPI will be building a strip mall located beside Xavier School.
Mr. Tan said EPPI is also looking at hotel ventures with potential partners in the future.
Part of the capex for EPPI has been allocated for its partnership with Ayala Land, Inc. The two firms earlier said it will be investing P53 billion for the first phase of Parklinks, a 35-hectare mixed-use estate covering areas in Quezon City and Pasig City.
Philippine National Bank (PNB) will corner P2.5 billion of the group’s capex this year. Mr. Tan said this will be used for upgrading the lender’s information technology systems.
Asia Brewery, Inc. (ABI), which produces beverage brands such as Cobra, Absolute, and Summit, will get P2 billion for capex, while rum-manufacturer Tanduay Distillers, Inc. will have P500 million.
LTG’s capex for this year is 35% higher than the P7.4 billion it spent in 2017.
Mr. Tan noted that 2018 will be a better year for the company, given the government’s efforts to address illicit tobacco trade involving cigarette firms not registered under the Bureau of Internal Revenue (BIR) in the country.
“We’re still hopeful that enforcement will continue, and that government could put a lid on these illegal and illicit activities. Enforcement is continuing,” Mr. Tan said.
The LTG executive, however, noted the outlook for the tobacco business remains mixed, given the additional taxes to be imposed on the sector under the Tax Reform for Acceleration and Inclusion (TRAIN) law.
The beverage business has also been hit with the passage of TRAIN, with the P6 additional tax on sugar-sweetened beverages affecting its Cobra brand. Cobra is the highest contributor to AIB’s revenues.
“Losers (from TRAIN) will be those affected by sugar tax, so Cobra is affected. Water and dairy are not taxed, that will be good. So I think it will just even out. Our portfolio is naturally hedged,” Mr. Tan explained.
He added that the company has seen a growth in water and dairy products with the implementation of TRAIN, as consumers shift to healthier drinks to avoid taxes on sugary drinks.
LTG posted a net income of P10.83 billion in 2017, 15% higher following the growth of PNB which accounted for almost half of earnings.

Ride-hailing firms rush into Philippine gridlock

A SLEW of ride-hailing ventures are taking to the gridlocked streets of Manila, undeterred by the market dominance of Grab now that it controls Uber in the Philippines.
Hype Transport Systems, Inc. and Ipara Technologies and Solutions, Inc. are just two of the five new entrants approved by the regulator since Grab agreed to take over the operations of Uber Technologies, Inc. across Southeast Asia. PT Go-Jek Indonesia, the biggest remaining rival in the region, will seek to enter the Philippines, said Aileen Lizada of the transportation agency.
Grab now controls more than 90% of the ride-hailing market in the Philippines but struggles to keep up with demand, with just 35,000 vehicles on its app to service as many as 600,000 requests a day. Ride-hailing has proven especially popular in Manila, where poor infrastructure and limited public transport contribute to traffic snarls estimated to cost the economy P3.5 billion ($68 million) a day. It has created an opening for start-ups like Ipara and Hype, both of which plan to start services this month.
“This is the perfect time to enter the market,” Paolo Libertad, chief operating officer of Ipara, said in a phone interview. “Commuters are realizing how difficult it is to have Grab as their only option.”
Go Lag, Inc. and Micab Systems Corp. are two other approved new entrants planning to start operations before the end of May while Hirna Mobility Solutions, Inc. hasn’t disclosed a target date.
An estimated 19% of commuters in Manila use ride-hailing, nearly double the 10% average in Southeast Asian capitals, according to a study by Boston Consulting Group. The entry of new players and continuing demand for services may force the regulator in the city to again raise the cap on ride-hailing vehicles, which was just increased by 42% in February to 65,000.
With the Philippine Competition Commission estimating Grab’s market share at 93%, the Singapore-based giant is taking action to allay criticisms. While Grab said it welcomes competition, the company is vowing to suspend drivers who cancel trips and has started masking destinations to prevent drivers from being selective. Ipara plans a similar strategy.
Hype is promising fares at least 20% lower than Grab’s by charging only for the distance traveled, not the time it takes to get through the capital’s clogged roads. Hirna founder Coco Mauricio is lobbying the transport regulator to cap fares and limit the promotions and incentives that only Grab can afford to offer. — Bloomberg

Grab Philippines to introduce new features in July

GRAB Philippines (MyTaxi.ph, Inc.) is set to launch in July new features in its ride-hailing mobile application, which would make it easier for users to pin pick-up points in the map, avoiding mismatch in locations.
“Our aim is to be our passengers’ partner for better trips at all times. We have carefully studied new features that will further enhance our services while ensuring passenger safety on the road,” Grab Country Head Marketing Manager Cindy Toh was quoted as saying in a statement.
Grab will also introduce an in-app SOS button, which passengers may use to report any untoward incident during a ride. Upon tapping the button, the application will connect the phone to 911 and send text messages to registered contacts in case of emergency.
Grab also urged users to send their complaints through the app’s Help Center. It said it is partnering with a call center that will receive concerns raised by riders.
“We know that this is not easy. While we cannot change everything overnight, we can assure that the Grab experience will only get better,” Ms. Toh added.
At the same time, Grab said is rolling out several initiatives for drivers, amid complaints from passengers regarding ride cancellations and rude drivers.
These initiatives are: Enhanced Driver Performance Incentives — which will reward drivers based on rating, feedback and number of rides; Driver Code of Conduct — a set of rules for drivers on proper road conduct; Grab Driver Academy — a set of modules on road courtesy, customer service, data privacy and social media handling; and Driver Rewards Program — which will provide a lounge for drivers and give out discounts on gas and maintenance. — Denise A. Valdez

Ayala Land net income rises 17% in 1st quarter

EARNINGS of Ayala Land, Inc. (ALI) increased by 17% in the first quarter of 2017, driven by its continued development of real estate and commercial properties.
In a statement issued Tuesday, ALI disclosed a net income of P6.52 billion for the January to March period, supported by a 17% growth in revenues to P36.98 billion.
Residential revenues surged 34% to P21.77 billion during the first three months, pushing property development revenues 29% higher to P25.14 billion. Robust local demand helped lift reservation sales by 16% to P31.5 billion.
“With the sustained economic growth of our country, demand for residential products across all market segments remained strong in the first quarter of this year,” ALI President and Chief Executive Officer Bernard Vincent O. Dy was quoted as saying in a statement.
The listed property giant launched its 25th estate called Parklinks during the first quarter. The 35-hectare mixed-use project along the C-5 corridor is being developed in partnership with Lucio C. Tan, Sr.’s Eton Properties Philippines, Inc. The two companies have committed to spend P53 billion for the first phase of the project.
At the same time, ALI secured a controlling stake in Malaysian property firm MCT Bhd, giving it a platform to expand in the Southeast Asian region. MCT Bhd generated P1.72 billion in development revenues for the first quarter.
On the other hand, revenues from the commercial leasing segment went up 11% to P8.16 billion for the quarter.
“Our leasing businesses also continued their steady increase in contribution, as recently opened malls and offices stabilize and start making an impact to our bottom line,” Mr. Dy said.
ALI is slated to open five new shopping centers this year, namely One Bonifacio High Street, Ayala Malls Circuit Makati, Ayala Malls Capitol Central, The Shops at Ayala North Exchange, and Ayala Malls Bay Area.
In terms of office buildings, ALI is set to complete the Vertis North BPO Tower, Ayala North Exchange, and Capitol Central Corporate Center. The hotel and resort business will also see the addition of 782 rooms under the Seda Hotel brand and 72 new rooms from the Sicogon Island Resort in Iloilo.
For the first quarter, ALI said it has already spent P26.7 billion out of the P111-billion capital expenditure it plans to roll out this year. Forty-one percent of the capex was allocated for residential developments, 23% for equity investments including MCT Bhd and Prime Orion Philippines, Inc., 22% for commercial leasing projects, 9% for land acquisition, and 5% for estate development.
“Our capex spend is on track as we complete projects and introduce new offerings in our estates. We remain positive and continue to execute on our growth plans,” Mr. Dy said.
Shares in ALI went up 10 centavos or 0.25% to close at P40.10 each at the Philippine Stock Exchange on Tuesday. — Arra B. Francia

EDC sees flat earnings this year

ENERGY Development Corp. (EDC) expects this year’s revenues and profit to be flat, as the Lopez-led company ended the first quarter with a double-digit decline in top-line and bottom line figures.
“We expect, as the units come online, to catch up. But compared to last year — our last year’s RNIA (recurring net income attributable to equity holders) was about P8.8 billion… Most likely we’ll probably end with the same, more or less, level,” said Erwin O. Avante, EDC vice-president and head for corporate finance.
“Last year, we were struck with the earthquake, starting July. So this year, depending on the progress in terms of putting the units back online we may end up with about the same level as last year,” he said in a briefing after the company’s annual stockholders meeting on Tuesday.
In the first quarter, the country’s largest geothermal and wind energy company posted consolidated revenues of P8.18 billion, down 15% from the level a year ago. Including non-recurring items, EDC reported a consolidated net income attributable to equity holders of P1.34 billion, or less than half of last year’s P3.09 billion.
In a regulatory filing, EDC attributed the decline to lower revenues, and was partly offset by higher insurance proceeds and lower interest expense.
Net income was down by 54% to P1.5 billion from P3.26 billion, although the company said its financial position remained strong with a cash balance of P14.27 billion.
In a statement, EDC Chief Financial Officer Nestor H. Vasay said the first-quarter results were dominated by the impact of Typhoon Urduja that hit Leyte island, the site of the company’s biggest geothermal business unit, in December.
“Generation volume was lower by about 40% in Leyte compared to 1Q of 2017, and we continued to incur recovery expenses. However, we are now at 90% of the return-to-service activities in Leyte, and is targeting to complete our program by the 3rd quarter,” he said.
Richard B. Tantoco, EDC president and chief operating officer, said the company would be focused on its geothermal business this year.
“Majority of our investments this year will happen in two areas. One is in our switchyards. We’re increasing the seismic specifications across our entire fleet. What we have there still works… As we maintain the assets, we’ll put the new ones and then we’ll have spares — the old ones,” he said, adding that this will happen this year and next.
“The second one is in the land site mitigation. We’re spending this year four times the average of the past 12 years,” he said, citing the latest outlay at P400 million for EDC’s Leyte assets.
Mr. Tantoco said the company’s foray into solar power would take a pause this year “because so many people had gotten into it.”
He said investments for wind would also be limited to the maintenance of the company’s concession areas. He noted the price of wind turbines has not gone down “far enough” to start a viable project without a guaranteed feed-in-tariff.
EDC has allocated a capital expenditure of P6.1 billion for this year, Mr. Avante said, adding that the amount is around the same as the previous year. — Victor V. Saulon

Gov’t raises P10B from 3-year Treasury bonds

THE GOVERNMENT made a full award of reissued three-year Treasury bonds (T-bonds) on Tuesday even as the rate inched higher amid strong market demand.
At yesterday’s auction, the Bureau of the Treasury raised P10 billion as planned from the reissued bonds maturing on Jan. 5, 2021. Total tenders reached P19.424 billion, nearly double the amount the government wanted to raise.
The three-year bonds fetched an average rate of 4.703%, up by about seven basis points from the 4.632% average fetched when the papers were last sold in April.
Tuesday’s awarded rate also inched up from the 4.25% coupon quoted when the papers were initially offered in January.
At the secondary market, before yesterday’s auction, the three-year papers were quoted at 5.3893%.
The bonds rallied to fetch a lower 4.6497% yield as trading closed.
Deputy Treasurer Erwin D. Sta. Ana said after the auction that the bureau received “healthy” demand for its offer of the three-year tenor.
“We received close to twice bid-to-cover ratio for [the] auction so that’s healthy demand on the three-year tenor. Average rates are within expectations so we see it as almost flattish from the previous level of that security,” Mr. Sta. Ana said. “It’s a good turnout for us.”
He added that demand for the bonds has “always been there” since the Treasury’s rates are now “relatively attractive” compared to previous levels.
“Usually the three and the five years get the most demand from our investors,” Mr. Sta. Ana added.
During last week’s auction of five-year T-bonds, the Treasury also decided to fully award the papers it placed on the auction block for a 5.452% average rate.
Mr. Sta. Ana noted that factors such as the rising inflation, as well as bets on a rate hike from the local central bank, were considered by the investors.
Headline inflation accelerated to a five-year high of 4.5% last month from the 4.3% print in March.
Amid rising inflation expectations, nine out of 11 economists polled by BusinessWorld said they expect the Bangko Sentral ng Pilipinas (BSP) to tighten monetary policy settings at Thursday’s meeting.
“All eyes are on the policy meeting on Thursday. Our inflation environment was also considered [by the investors],” Mr. Sta. Ana added.
Sought for comments, a bond trader said government auction results “[have] become more predictable.”
“[We saw a] nice auction result. It looks like the yield range at which BTr awards has become more predictable. [On Monday], the [indication] was 4.5-4.75% and the actual range was 4.55-4.75%,” the bond trader said.
The trader added that the market might continue to see some support for bonds at the short end in the near term.
The Treasury is holding two auctions per week this quarter — one for T-bonds and another for Treasury bills — to reflect increased borrowing requirements.
The government plans to borrow P888.23 billion this year from local and foreign sources to fund its budget deficit, which is capped at 3% of the country’s gross domestic product. — Karl Angelo N. Vidal

Pandas and Art: 5 artists merge art and nature


PANDAS ARE CUTE, and so is any artwork that includes these chubby, clingy animals as the subjects. For this reason, the World Wide Fund for Nature (WWF) Philippines’ project is charming. But there is more to the visual exhibition: conservation.
To support its biodiversity preservation efforts, the WWF Philippines tapped renowned National Artist Benedicto “BenCab” Cabrera and artists Elmer Borlongan, Geraldine Javier, Mark O. Justiniani, and Jose Santos III to create limited-edition sculptures that highlight the organization’s iconic panda logo.
The campaign, called “Art, Heart, Earth,” is the WWF’s initial project and is done in collaboration with Tin-aw Art Management, Inc. and Secret Fresh.
“The Philippines is one of the 17 mega-diverse countries in the world, home to more than half of the world’s species. We are very excited to have five of the nation’s top artists join our battle to conserve nature in the face of climate change. We hope that through art, we continue to raise awareness of the urgent need to step up environmental action to protect earth’s biodiversity,” said Joel Palma, WWF-Philippines president and CEO.
The five artists played on the concepts of sustainability, living in harmony with nature, and people’s role in conservation in figurines — 30 pieces per design — which incorporate pandas.
Mr. Cabrera’s Kapit-Bisig highlights his iconic muse Sabel, this time hand in hand with a smiling panda. His work seems to show optimism for nature and our future. On the other hand, Borlongan’s Wildlife Rehabilitator features a very serious panda perched up on the shoulders of his signature bald man and his iconic, almost angry, stare.
Though they have different approaches for their pieces in the collection, the artists are united in their call to save the environment.
Mr. Borlongan, who lives in Zambales, 10 minutes away from the sea, said he has been a witness to how dynamite fishing can harm both the environment and fisherfolk who have lost limbs due to this practice. Mr. Borlongan — who champions the everyday man as his subject — was already creating art tackling this concern before the WWF project came along.
“We have to have discipline in cleaning up our surroundings and planting trees,” said Mr. Cabrera, whose BenCab Museum in Baguio looks out towards a tree-covered mountainside. He has planted many indigenous trees in his museum’s grounds.
Mr. Justiniani, known for playing tricks using mirrors in his works, created Kugos (Carry), which has a straightforward meaning: the ability of man to save animals. His work features a sad caretaker in a panda suit. It lets the audience question who is really sad, is it the man or the panda?
“If you think about the world, it will survive… so the environmental issue is actually a human issue. If we don’t take care of it, we will lose ourselves. We know we need to take care of the environment because that is our future, the future of human beings,” said Mr. Justiniani.
Mr. Santos III’s Natural Selection, meanwhile, is made using fiberglass reinforced with resin, wood, acrylic, and pen and ink on paper. Like his signature works that highlight found objects turned into artwork, Mr. Santos said that he sees parallels in his work and the WWF advocacies.
“I view this process as saving and salvaging these materials from their eventual death or uselessness. And this is where I see a certain parallel with the concerns of WWF in saving nature, saving wildlife, and saving the world as a more general concern,” he said.
Ms. Javier’s work, Home, is inspired by her community in the province, she said, stressing the importance of a sustainable environment. Her work shows a panda with plants that spring from its feet.
“Art, Heart, Earth” will be a series of collaborative projects between the WWF and Filipino artists. The pieces mentioned in the story have already been sold and all the proceeds will go to WWF Philippines. To know more about WWF Philippines and how to help, visit: https://www.facebook.com/WWF.Philippines/. — Nickky F. P. de Guzman

Petron nets P5.8 billion in 1st quarter

PETRON CORP. on Tuesday said it posted a consolidated net income of P5.8 billion in the first quarter, up 4% year on year and the highest quarterly income in its history.
Consolidated revenues reached P129 billion, up 21% from the previous year’s P106 billion, as the “stable and improved operating efficiencies at its Bataan refinery significantly contributed to its positive performance.”
“Our financial and operating performance in the first quarter of 2018 is a strong indication that we are on track for another unprecedented year,” said Ramon S. Ang, Petron president and chief executive officer, in a statement.
“While we are focused on high-margin segments such as retail, we are also fast-tracking our logistics projects to further integrate our value chain, reflecting increased demand for Petron’s superior products,” he added.
Petron said despite higher international oil prices and softer demand, it was able to sustain strong sales with combined volumes of 26.6 million barrels. The growth was driven by a 5% increase in consolidated domestic sales equivalent to over 1 million barrels.
“This is at par with last year’s volumes which reached all-time highs. The benchmark Dubai crude in the first quarter of this year surged by 20% to nearly $64/barrel compared to the same period in 2017,” the company said.
During the quarter, Petron’s 180,000 barrel-per-day Bataan refinery hit its highest ever utilization rate at 99% or near full capacity.
On Tuesday, shares in Petron rose 0.32% to close at P9.27 each. — Victor V. Saulon

PNB income up 20% in Q1

PHILIPPINE National Bank’s net profit climbed 20% to P1.5 billion.

PHILIPPINE National Bank (PNB) saw its net profit rise in the first quarter on the back of growth in its core operating revenues.
In a disclosure on Tuesday, the Lucio C. Tan-owned PNB said it booked a net income of P1.5 billion in the January-March period, up 20% from the P1.2 billion it logged the same period last year.
The lender attributed its improved profit to the 24% year-on-year growth in its core operating revenues.
PNB’s net interest income rose 25% to P6.4 billion last quarter from P5.2 billion in the comparable year-ago period, driven by “higher loan volumes and net interest margins.”
Total loans expanded by 16% to P502.5 billion last quarter from a year ago. Total deposits also rose 11% to P658.1 billion.
Net service fees and commission income also went up 20% to P852.1 million in the January-March period.
However, trading and foreign exchange gains plunged to P54 million in the three months ended March from last year’s P498 million.
Overall, PNB’s consolidated assets stood at P850.7 billion at end-March, growing 8% from the year-ago figure.
PNB’s net non-performing loans (NPL) ratio stood at 0.35%, while NPL coverage remained “more than adequate,” standing at 131%.
The bank’s common equity Tier 1 ratio stood at 14.6%, while capital adequacy ratio was at 15.3%.
Last month, the lender raised $300 million in fixed-rate senior notes under the first tranche of the bank’s Euro medium term note program, marking the maiden drawdown from its $1-billion program.
“There was strong demand for the offering which reached approximately $1.2 billion at its peak, equivalent to an oversubscription of four times the issue amount, with 118 investors registering interest at that time,” PNB told the Philippine Stock Exchange yesterday.
Moody’s Investors Service assigned an investment-grade rating to PNB’s note issuance, matching the Baa2 rating of the Philippine government.
PNB shares closed at P52 apiece on Tuesday, down 10 centavos or 0.19%. — K.A.N. Vidal

P2.5M for letter opener

A 20th century Fabergé brass letter opener, a 19th century oil painting of the Annunciation, vases by French artist Émile Gallé, and a Hispano-Filipino ivory figure were among the many opulent pieces on sale at the Makati City showroom for Casa de Memoria’s 2nd anniversary auction on May 5.
The auction house — which specializes in antiques and heirlooms from Europe but which recently added Asian antiques — celebrated its 2nd anniversary with pieces that come in pairs.
“For this anniversary, we’re concentrating on perfect pairs to play up the 2nd anniversary set up. A lot of items here are sold as two lots in one,” Casa de Memoria marketing manager Camille Lhuillier told BusinessWorld shortly before the auction.
The house’s 11th auction included neoclassical furniture, porcelain and ceramics, paintings and drawings by Filipino artist Romeo Tabuena, gold jewelry, European pocket watches, and Asian ivory.
Seventy-eight out of 195 lots were sold. The highest bid at the auction was for the Fabergé letter opener (which sported a mammoth finial and a green enameled handle) which sold at a hammer price of P2.5 million (opening price was P120,000). This was followed by the painting The Annunciation with God the Father which went for P420,000 (opening at P220,000).
The ecru- and dark amber-toned art nouveau floral vases by Émile Gallé were sold at P75,000 and P35,000, respectively. Among the ivories, a Hispano-Filipino figure of Sto. Niño Peregrino was sold at its opening price of P450,000, while a 19th century European figure of the infant Jesus figure sold at P180,000.
Five untitled paintings and drawings by Romeo Tabuena were all sold for a little more than their P25,000 opening bids — a portrait of a man went for P30,000; one of a man with hat for P45,000; while the rest, including a drawing of a mother and child, each went for P35,000.
“These are not things to look at. These are things to use and make a part of your house out of.” Ms. Lhuillier said, noting that antiques are not only objects for display.
“I think people approach art with it being like a museum. It has to be something that is revered, but it is also something to be used. These were made with something to use in mind.” — Michelle Anne P. Soliman

RLC teams up with Hongkong Land for projects

ROBINSONS Land Corp. (RLC) has partnered with Hongkong Land Group (HKLG) for the development of real estate projects in the country, starting with a P5.6-billion residential property in Pasig City.
The Gokongwei-led property developer disclosed to the stock exchange on Tuesday that it has signed an agreement with HKLG through its representatives Hongkong Land International Holdings Ltd. and its subsidiary Ideal Realm Ltd.
RLC and HKLG have agreed to invest approximately P5.6 billion.
RLC will have a 60% stake in the joint venture (JV) company, which will develop a residential project located in Block 4 of Bridgetowne East in Pasig City. To note, Bridgetown East is a business park developed by RLC that houses office buildings occupied primarily by business process outsourcing firms.
Aside from developing the property, the JV company will also be in charge of the marketing and sale of the residential units. It will also be used for other projects in the future.
HKLG is a property investment, management, and development group based in Hong Kong with around 850,000 square meters of prime office and luxury retail property under its portfolio. In Hong Kong’s Central district, the company has around 450,000 sq.m. of prime property, as well as a luxury retail mall in Beijing and a stake in an office complex in Jakarta. It also has 165,000 sq.m. of office space in Singapore, mainly through joint ventures.
“This collaboration combines the experience, vision and financial capability of RLC and HKLG; bringing together local expertise and international design that stand as landmarks in key Asian cities. The project is envisioned to transform the landscape of Pasig City, adding to it a well-planned township of mixed-use development with skyscrapers imbued with international appeal,” RLC said.
The JV firm will be governed by a board of directors composed of three nominees from RLC and two nominees from HKLG.
RLC said it has already received clearance from the Philippine Competition Commission for the project last May 4.
This is the listed property developer’s second joint venture for the year. Last March, RLC announced its partnership with Shang Properties, Inc. for a P10-billion mixed-use project in Bonifacio Global City, Taguig. The two firms plan to develop residential condominium units and serviced apartments in the area. — Arra B. Francia

New York auction houses get set for an ‘extraordinary season’

NEW YORK — Six months after selling a Leonardo da Vinci for half a billion dollars, New York art auction season is back, gearing up to break new records with a magnificent Rockefeller collection and a Modigliani.
The collection was amassed by the late billionaire banker David Rockefeller, who died last year aged 101, and his wife Peggy.
In all, Christie’s is selling 1,600 items over three days, with an expected take of $600 million. The proceeds are going to charity.
The jewel in this collection’s crown is Picasso’s 1905 masterpiece Fillette a la corbeille fleurie (Young Girl with a Flower Basket). Its purchase by Gertrude and Leon Stein, along with two other Rose Period paintings, helped jump-start the artist’s career.
The Picasso alone is valued at $100 million, but the combined total is expected to smash the previous record for a collection set by that of Yves Saint Laurent and Pierre Berge, which fetched $484 million in 2009.
For the first time, Christie’s this year will spread its spring sales over two weeks, twice the traditional length, kicking things off on Tuesday.
This comes after Christie’s sold da Vinci’s Salvator Mundi, a 500-year-old depiction of Jesus Christ, for $450.3 million in November, making it the most expensive work of art ever sold at auction.
CHRISTIE’S ‘BIGGEST EVER’
“After the Leonardo, I went through three weeks of a bit of a lowdown. But then you get excited by new projects,” said Loic Gouzer, co-chairman for postwar and contemporary art at Christie’s.
“Not only is the Rockefeller sale the biggest sale we’ve ever had at Christie’s, but the Impressionist and modern sale is also the biggest one ever,” he told AFP.
“It’s probably going to be the biggest season Christie’s has ever had.”
The highlight of the second week is Sotheby’s May 14 sale of a stunning nude by Amedeo Modigliani, expected to fetch more than $150 million, the highest pre-sale estimate for any work of art at auction.
Another of the Italian’s nudes sold for $170.4 million in 2015, currently the third most expensive work of art ever sold at auction.
A REVOLUTIONARY MODIGLIANI
Not only is Modigliani’s Nu couche (sur le cote gauche) his biggest painting, Sotheby’s calls it the greatest of his celebrated reclining nudes. It was the cover star of a recent retrospective at the Tate Modern gallery in London.
Simon Shaw, co-head of Impressionist and modern art at Sotheby’s, said Modigliani quietly revolutionized nude painting in the work — rooted in tradition but reflecting the changing status of women during World War I.
“This is a nude of a very self-possessed, sexually confident woman who is not looking out from a distance. She’s absolutely meeting our gaze,” he told AFP.
Overall, the season includes five works estimated at $70 million or more, including a painting by Malevich and a sculpture by Brancusi, and will test the depth of an increasingly globalized art market.
“I think demand is at an all-time high at this point for the very best of the best. It’s a selective market. It’s not every work that would meet that appetite,” Shaw said.
THE ‘NEW’ COLLECTOR
After the remarkable marketing blitz around the Salvator Mundi in November, the spring season is focused more than ever on a new generation of buyers building collections differently than in the past.
Traditionally divvied into Impressionist and modern, and postwar and contemporary, those categories are ebbing away as the new generation wants not just a savvy investment but the ultimate status symbol.
Both Christie’s and Sotheby’s, rivals founded in 18th century London and still dominating the market, have mixed and matched periods in the hanging and grouping of their pre-sale exhibitions.
Shaw says collectors “want the best of its kind rather than collecting a particular school or period,” adding that categories are increasingly “anachronistic.”
“It’s going to be an extraordinary season,” he predicted.
“We’ve seen a lot of great works of art in recent times on the auction market but never anything quite like this.” — AFP

1...11,15411,15511,156...12,768Page 11,155 of 12,768
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin Twitter Youtube