Classic car investing via the stock market with Tertre Rouge Assets

The 1952 Ferrari Formula 2 was a rare beast. Only five were ever built, including the first Ferrari to win the Grand Prix in Monaco.

 Known for its exceptional chassis, this is the most prized of the ’52 five and it is about to be acquired by Tertre Rouge Assets, a new company dedicated to the classic car market.

Tertre Rouge is one of a kind. Named after a famous bend on the Le Mans circuit, the firm was set up to give ordinary investors access to a market traditionally reserved for old, monied families and billionaire business owners.

The classic car market is valued at almost £35 billion and it is growing at more than 8 per cent annually. 

But not all classic cars are created equal. At the top end are vehicles which are extremely rare, technically brilliant and unquestionably genuine. These are the jewels in the classic car crown. 

They seldom come on to the market, are worth several million pounds apiece and are owned by the super-rich, from Ralph Lauren to the Sultan of Brunei.

This section of the market is inaccessible to all but the chosen few – those with pots of money or a deep understanding of the sector and its assets. Tertre Rouge’s board has both. 

Directors include Formula 1 champion Mika Hakkinen, described by racing legend Michael Schumacher as the man he most respected on the circuit.

Hakkinen retired from the track more than 20 years ago but has since become a keen investor in top-of-the-range motors. British former racers David Coulthard and Allan McNish are also on the board, while chief executive and co-founder Andre Ahrle drove for Porsche through the 1990s.

Ahrle is a successful entrepreneur as well, with a top securities business to his name, working for stars such as Madonna, David Bowie and the Rolling Stones. A classic car enthusiast, Ahrle has spent the past two decades building a collection, from 1960s Ferraris to old Ducatis. 

He has acquired a reputation for successful investing, tracking down rare motors, acquiring them off market and knowing exactly who might be prepared to pay up for them down the line.

Hakkinen, Coulthard, McNish and Ahrle share a passion for racing vehicles combined with a nose for hard cash. 

Chairman and co-founder Steven Shapera does not even own a car but he does know how to make money, having amassed several hundred million pounds founding and selling beauty businesses. 

While looking for ways to invest his fortune, he met Ahrle. The two started collecting together, hit on the idea of Tertre Rouge and acquired a cash shell in 2022, since when they been seeking out prime assets that will deliver robust returns to shareholders.

Now, Tertre Rouge is ready to roll. Six prime cars have been lined up for purchase, three Ferraris, a Jaguar E-Type, a Lamborghini and a Mercedes-Benz. All date back to the 50s, 60s and 70s and are priced at £1 million to £10 million apiece.

At prices like these, mistakes can be catastropic, so Ahrle’s due diligence has been extensive, down to checking individual nuts and bolts on each vehicle. Almost 60 cars failed the test but six passed and exclusive contracts have been signed on all of them.

While Ahrle studied cars, Shapera hunted for complementary businesses that would generate cash from day one. 

He found Run To, which offers wealthy classic car owners the chance to drive from cities around Europe to the Monaco Grand Prix, staying at luxury locations en route. 

The trips are much in demand, the business is highly profitable and Shapera already has ideas about how to double Run To’s sales and earnings in short order.

Tertre Rouge hopes to raise £50 million by offering shares to investors at £1.05 apiece. Around £30 million will be spent on the six-car collection, £5 million on Run To and the rest will be used to buy new vehicles, acquire other firms with a motor spin and keep the business ticking over. 

Shapera also intends to offer special perks to investors, via Ecurie TRA, a shareholders’ club offering discounts and priority access to key events.

Tertre Rouge shares are suspended while the fundraising takes place and listing rules mean that large investors must subscribe for approaching £30 million of stock before individuals can apply for shares. But they will then be available via brokers and all the major platforms.

The same price will be offered to applicants large and small and investors will also be able to buy stock in the market once trading starts up again.

Midas verdict: Luxury goods have had a hard time lately, with demand slacking off as inflation and high interest rates take their toll on consumers’ pockets. 

Ultra-exclusive classic cars seem to be a different breed. Tertre Rouge offers access to this rarefied market and there is a chance of rubbing shoulders with Formula 1 champions too. At £1.05, this share offer is worth a closer look.

Traded on:  Main market Ticker: TRA Contact: tertrerougeassets.com or Buchanan on 020 7466 5000