George Michael's art collection goes for Dh55 million in auction


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A collection of contemporary art once owned by singer George Michael, including works by Damien Hirst and Tracey Emin, has been sold for £11.3 million (D55.2 million), Christie's auction house said.

Michael was a keen collector of works by the Young British Art movement and developed friendships with many of the artists, visiting their galleries and studios.

Christie's billed the sale of more than 200 works as a "once-in-a-lifetime opportunity" for fans of the tradition-defying movement from the 1980s and 1990s.

The Incomplete Truth, a 2006 work by Hirst consisting of a dove preserved in formaldehyde, sold for £911,250 (Dh4.45m) - below its estimated price of £1-1.5 million.

More than 200 pieces from singer George Michael's private art collection went under the hammer. EPA
More than 200 pieces from singer George Michael's private art collection went under the hammer. EPA

Bridget Riley's 1982 painting Songbird, the first major work Michael acquired according to Christie's, fetched £791,250 (Dh3.87m), while Hurricane, a 2007 work by Emin, sold for £431,250 (Dh2.1m).

Proceeds of the auction will go towards Michael's various philanthropic ventures, the auctioneers said.

The collection was previously described by Cristian Albu, co-head of postwar and contemporary art at Christie's, as "a portrait of Britain in the 1990s".

He said Michael wanted "to celebrate a time in which new life was breathed into London", and began buying works by artists who became personal friends.

A Christie's staff member poses with commissioned portrait by Michael Craig-Martin. Getty Images
A Christie's staff member poses with commissioned portrait by Michael Craig-Martin. Getty Images

"He was introduced to Tracey Emin and from then everything is history," Albu said. "Tracey introduced him to the whole gang ... He was going to their studios and they were coming to his concerts."

The singer died of heart and liver problems on December 25, 2016 at the age of 53.

His art collection was subsequently exhibited around the world, including New York and Shanghai, before the auction. Stand-out works were sold at Christie’s London headquarters, with some also going under the hammer as part of an online auction

During his career, both with Wham! and later as a solo artist, Michael sold more than 100 million records and had a string of massive hits between 1983 and 1996.

Among his biggest hits were Wake Me Up Before You Go-Go, Last Christmas and Faith.

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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