$5 Million Picasso to Be Offered Down Under

SYDNEY—A Picasso painting valued between $5 and $7 million (U.S. $4.7–6.6 million) will be auctioned off in Sydney next month, the Australian reports. The painting is being offered at Deutscher-Menzies, an auction house owner by Rod Menzies, who is also the owner of the painting.

If sold within estimate, Sylvette (1954) will set a record for the highest price paid at an Australian art auction. The record is currently held by Brett Whiteley's The Olgas for Ernest Giles, which brought in $3.48 million including buyer's premium last June.

Many industry insiders have questioned Menzies's unconventional tactics, which include offering high guarantees for sellers, entering into financial agreements with buyers, and putting his own artworks on the block at his auction houses. "These tactics don't reflect a fair market," said Tim Goodman, chief executive of Bonhams and Goodman auctioneers.

Last year Menzies Art Brands sold $64.4 million of art at auction, beating out the local Sotheby's branch's $51.49 million. "I am propping up the market," Menzies said, "but I think [the Picasso] will exceed market expectation."