MIDAS STOCK TIPS: Invest in classic cars through 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 Monaco Grand Prix.

Known for its exceptional chassis, this is the most highly regarded of the five from ’52 and is about to be acquired by Tertre Rouge assetsa new company dedicated to the classic car market.

Tertre Rouge is one of a kind. The company, named after a famous corner on the Le Mans circuit, was founded to give ordinary investors access to a market traditionally reserved for old, wealthy families and billionaire owners.

The classic car market is valued at almost £35 billion and is growing at an annual rate of more than 8 percent.

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

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

This part 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. The board of Tertre Rouge has both.

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

Hakkinen retired from the circuit more than twenty years ago, but has since become an avid investor in top motorcycles. British former racers David Coulthard and Allan McNish also sit on the board, while CEO and co-founder Andre Ahrle drove for Porsche until the 1990s.

Ahrle is also a successful entrepreneur, with a top securities company to his name, working for stars such as Madonna, David Bowie and the Rolling Stones. A classic car enthusiast, Ahrle has built up a collection over the past twenty years, from Ferraris from the 1960s to old Ducatis.

He has built a reputation for successful investing, tracking down rare engines, acquiring them off-market and knowing exactly who would be willing to pay for them later.

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

Chairman and co-founder Steven Shapera doesn’t even own a car, but he sure knows how to make money, having amassed hundreds of millions of pounds creating and selling beauty companies.

While looking for ways to invest his fortune, he met Ahrle. The two started collecting together, came up with the idea of ​​Tertre Rouge and acquired a cash shell in 2022, since then they have been looking for prime assets that will deliver robust returns for shareholders.

Now Tertre Rouge is ready for use. There are six top cars ready for purchase: three Ferraris, a Jaguar E-Type, a Lamborghini and a Mercedes-Benz. They all date from the 1950s, 1960s and 1970s and cost £1 million to £10 million each.

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

Star quality: Mika Hakkinen, pictured with his wife Marketa, is director

While Ahrle studied cars, Shapera looked for complementary businesses that would make money from day one.

He found Run To, which offers wealthy classic car owners the chance to drive to the Monaco Grand Prix from cities across Europe, staying in luxury locations along the way.

The trips are in high demand, the company is very profitable and Shapera already has ideas on how to double Run To’s turnover and income in the short term.

Tertre Rouge hopes to raise £50m by offering shares to investors at £1.05 each. 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 companies with an engine spin and keep the business running.

Shapera also plans to offer special benefits to investors through Ecurie TRA, a shareholder club that offers discounts and priority access to key events.

Tertre Rouge shares have been suspended while the fundraising takes place and listing rules mean large investors must subscribe to almost £30 million worth of shares before private individuals can apply for shares. But they will then be available through brokers and all major platforms.

The same price will be offered to large and small applicants and investors will also be able to buy shares in the market once trading resumes.

Midas judgment: Luxury goods have been struggling lately as demand has waned as inflation and high interest rates take their toll on consumers’ wallets.

Ultra-exclusive classic cars seem to be of a different breed. Tertre Rouge offers access to this rare market and there is a chance to also come into contact with Formula 1 champions. Priced at £1.05, this share offering is worth a look.

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