KUALA LUMPUR – A newly established investment holding firm here is looking to make fine art investments more accessible to the wider community by changing the way the works are traded, consumed and valued.
Currently, the recently-launched US Artbank International (Usabi), is gearing up for a post-pandemic scenario with its aim to increase accessibility, liquidity, and efficiency in the art market.
Leveraging on cutting edge technology and innovation, the firm looks to drive better growth rates for both artists and collectors and develop a frictionless sale and acquisition experience.
This means that in the near future, Usabi will allow a middle-income person to invest and co-own highly-priced art pieces, which is gaining traction as an acceptable asset.
"Many people think that (fine) art is only for the rich – it's not true. We want to make it accessible, collectible, scalable and have liquidity," said its group executive director, Serena Chiam, when met recently.
How do art pieces make good assets? For one, Serena explains that art is more movable, transportable, and transactable compared with other forms of assets like property, which are not as mobile or do not exchange hands as swiftly.
The initiative to allow co-ownership of fine art may be some years away, but in the meantime, the firm is offering webinars and other online resources to collectors.
Headquartered in Malaysia, Usabi, which was launched on September 24, has representative offices in Indonesia and China, as well as a global network that extends across Singapore, Taiwan, the Middle East, Russia, and the United States.
Usabi's main showroom, Aureo Gallery in The Vertical, Bangsar South, is home to a wide collection of fine art pieces made by artists from all over Asia.
Midas touch
The company's flagship product is the artwork of South Korean artist Kim Il Tae, the first and only artist to paint with 24-karat gold on canvas.
According to Usabi, his medium is a proprietary blend of 24k gold, natural oils and a glue, which took seven years to develop. His formula, the company said, remains a closely-guarded secret.
Serena said the masterpieces are able to maintain the same lustre and sheen for 1,000 years. This artist’s career highlights include a two-week solo exhibition in the Saatchi Gallery in London, 2016.
Usabi has also invested heavily in Kim's work and is the exclusive owner of 1,000 of his gold paintings. Only 1,200 of his artwork exist.
Among the collectors of his works are Prince Michael Kent of the British Royal Family, Korean celebrity PSY and Chinese artist Zhou Xun, among others. At the Beijing Poly Auction 2019, Kim’s artwork sold for USD$14,000 (RM58,170) per size, fetching USD$59,000 (RM245,145).
This puts his artwork in the range of US$28,000 for a #2-sized (14cm x 29cm) painting to USD$1.4 million for a #100-sized (96cm x 162cm) piece.
Aureo Gallery, where the idea to form Usabi was hatched, has been running since 2017, several years after Serena personally met Kim in South Korea in 2013 when she worked in the financial sector.
Serena said she became immersed in his paintings and bought a piece of art from him instantly. The piece sold for US$80,000 (RM304,000) at the time and has now appreciated to US$166,185.
"At the time I didn't know anything about art, but I was told that his work was made of 24-karat gold and I thought it was a good art piece to invest in," she said, adding she began her foray in the art business in 2014.
Recognising the uniqueness of Kim's work, Serena gradually bought another 15 art pieces from him and began a business in the art world, bringing the product to the Malaysian market.
Serena says art investors can typically expect a 3 to 5% annual returns, while record-breaking pieces enjoy 10 to 15% growth in value.
The artwork traded by Usabi are certified, and also go through a meticulous quality assessment and evaluation process to ensure authenticity of the items sold.
Celebrating the creative spirit and giving back
To make an impact, Usabi chairman Puan Sri Datuk Akmal Abdul Salam, said the company was to help grow the arts ecosystem by nurturing art talents.
"We’ve invested in standout artists who we believe are pushing boundaries and we’re sharing our discovery with art lovers not just as assets to invest in but also as a celebration of the creative spirit,” she said.
Locally, Usabi is working with young emerging artist Yap Chun-Yu, whose first collector was Raja Puan Muda Perlis Tuanku Hajjah Lailatul Shahreen Akashah Khalil.
Other homegrown artists include Jeganathan Ramachandram who is renowned for merging arts with science, sound, light and poetry in his visual works.
Beyond the arts, Akmal who met Serena at a fundraiser event for autistic children roughly two years ago, said Usabi was constantly working for charity.
"At the end of the day, we wanted to do charity," said Akmal in explaining her working relationship with Serena.
Akmal added that apart from providing food and financial aid during the pandemic, the company's community service involved Breast Cancer Welfare Association as well as the Orang Asli group.
"We also focus on helping women as they are the core of the family," she said. – The Vibes, November 7, 2020
