Phillips auction house plans massive expansion in Asia

“The world is turning east,” says Phillips’ chief executive Stephen Brooks. “We have a great belief in Asia long-term and we want to be part of that and are already part of that.” The auction house, which focuses on 20th- and 21st-century art and design, watches and jewellery, has just signed a deal to create a massive saleroom and offices in Hong Kong’s West Kowloon Cultural District Tower, just across from the Herzog & de Meuron-designed M+ museum, which opened in November.

Phillips will move into its new premises towards the end of 2022. The location boasts 48,000 sq ft, including a triple-height showroom overlooking Victoria Harbour. The company will significantly increase the number of sales it holds in the territory, says Brooks, bringing in other categories besides art.

Buying by Asian collectors and institutions in Phillips’ sales grew from US$150m last year — a low base because of Covid — to US$270m this year, with Asian buyers underbidding (offering the second-highest bid) 60 per cent of its lots. “In 2021 so far, Asia-based clients represent over US$1bn if you include buying, selling and underbidding,” says Brooks, pointing out that half of the top 10 lots auctioned by Phillips this year went to Asian buyers. These included Georgia O’Keeffe’s “Crab’s Claw Ginger Hawaii” (1939), which sold for US$7.7m in New York in November, going to the Long Museum in Shanghai.

There has been particularly strong bidding by younger collectors for younger artists, the field in which Phillips specialises. In November the company’s joint sale with the Chinese government-owned Poly Auction pulled in HK$670m (US$86m). Works by buzzy names such as Cinga Samson, Salman Toor and Julie Curtiss surpassed estimates, sometimes by up to 10 times. Brooks says the Poly partnership is very attractive “as we can hook into mainland Chinese buyers, and this is good for western sellers. We expect it to continue.”

Other auction houses are beefing up their Asian presence. Christie’s is to move its Asia Pacific headquarters to the Zaha Hadid Architects-designed tower The Henderson in Hong Kong Central in 2024. There it will occupy 50,000 sq ft with a saleroom and offices. Meanwhile, Sotheby’s has sent two of its top specialists, Alex Branczik and Max Moore, to its Hong Kong headquarters, with Branczik becoming chair of modern and contemporary art in Asia.

Asked why Phillips chose West Kowloon over Hong Kong island itself, Brooks noted its good connections — direct access to Hong Kong’s airport and a high-speed rail link that puts it 15 minutes from mainland China. As well as M+, the district will be home to the controversial Palace Museum, which will show traditional art from the Forbidden City and is due to open mid-next year. The project has been criticised for lack of local consultation and is seen by many as an effort by Beijing to increase its influence over Hong Kong.

Asked about the future of Hong Kong as an art hub, despite mainland China’s increasing grip on the territory, Brooks says: “Hong Kong is important, and in fact will become more important over time. We haven’t seen any signs that the economic powerhouse that is Hong Kong is going in the other direction. We believe it is the best place to expand our business.”