Source: Algodon Wines & Luxury Development Group
03.17.2014
FOR IMMEDIATE RELEASE
NEW YORK, NY – (March 17, 2014): Scott Mathis, Chairman & Founder of Algodon Wines & Luxury Development Group (“Algodon Partners”), announced today the release of Algodon Partner’s 2014 Whitepaper on Investing in Argentina, which reports the company’s position on why they believe there has never been a better time to seek investment opportunities in Argentina’s real estate market. Algodon Partners has been investing in Argentina since 2006 in the wine, real estate development, and hospitality sectors.
“Contrary to popular opinion, we believe there are boom times ahead for Argentine assets, and that Argentina represents one of the best-calculated bets that one can make in global investment today. There is virtually no leverage in real estate, and in recent history, very little foreign investment. As a result, asset prices are some of the cheapest in the world,” says Mathis. “Luxury properties in Buenos Aires, for example, are available for a fraction of the value of analogous properties in world class cities such as New York, Paris or London. The prices of vineyard estates in Mendoza, Argentina, are also some of the least expensive you could find anywhere in the world, and have displayed a steady recorded growth of up to 25% annually. Mendoza shows the highest increase in vineyard property valuation among comparable vineyard estates in other world-wine centers globally, including Napa, Tuscany and Bordeaux. Now is the time to invest in Argentina real estate and other assets, in fact, we feel there has never been a better time. Those asset values can increase dramatically, but you’ve got to invest before the crowd. Latecomers oftentimes rush in after the politics and the economics have turned, but no wealth has ever been created by getting in late.”
Mathis and Algodon Partners believe there is already evidence of a turnaround in Argentina’s economic policies due to a series of significant positive developments that have recently taken place, and that there is a window of opportunity to acquire Argentina assets at great values, as the real estate and stock markets continue to move forward in the years ahead. “We are contrarian investors, and like John Templeton, who famously coined the phrase ‘go in at the point of maximum pessimism’, we believe the timing is right and that investors may be well-rewarded for their risk,” says Mathis. “We would welcome the Argentine government fully relaxing currency controls and continuing its recent progress in adopting market friendly policies. This would allow the peso to float freely against the dollar and bring the exchange rate more in line with the unofficial blue rate. We are already seeing the government making great strides in demonstrating clearer economic policies that are investor friendly. A newly released inflation index, developed in conjunction with the IMF, is viewed as a more transparent and credible snapshot of the country’s inflation rates, and as a result could open access to billions of dollars in future financing. We are seeing serious negotiations with the Paris Club, and a settlement was already reached with 93% of past bondholders after the restructuring of its sovereign debt. In addition, a USD $5 billion compensation agreement was settled with Repsol just recently. These initiatives are the key to Argentina’s economic recovery, and real progress is already being made. The prospect of business friendly politics is enticing investors in sectors such as energy, industry, infrastructure and natural resources including billions from Chevron and SHELL who are now exploring Vaca Muerta’s second-largest reserves of shale gas and fourth-largest reserves of shale oil in the world, as well as Toyota, Chinese direct investments, and many others. These companies have carefully evaluated Argentina’s economic and political climate, and as well as its investment risk potential, and have resolved to commit significant long-term capital investments because of the strong potential for future growth and investment returns. That is why our company, Algodon Partners is there too. In business terms, a devalued peso is not necessarily a hazard across the board. A currency devaluation certainly helps tourism, enticing foreign holidaymakers seeking to make their vacation money stretch further. A devalued peso may also aid Argentina’s wine exporters by improving market competitiveness and leading to better revenues. Additionally, non-leveraged real estate is a hedge against inflation, and we believe that over time the land values will perform incredibly well. We are very excited about the growth potential. We are long-term investors and believe that we are in the right part of the world at the right time. Certainly not without risks, but we feel Argentina is well-worth the potential rewards in the year ahead.”
To read more about Investing in Argentina Real Estate, click here to request Algodon Partners’ 2014 Whitepaper: Invest in Argentina.
Click here to view Algodon Partners’ brief corporate video.
About Algodon Wines & Luxury Development Group (Algodon Partners)
Algodon properties are owned and operated by Algodon Partners, founded by Chairman & CEO Scott Mathis and partners. Based in NYC with offices in Buenos Aires and Mendoza, Algodon Partners provides an unequivocal strategic advantage in Argentine real estate acquisition and development. Own a part of the dream.
About Algodon Wine Estates, a Mendoza wine resort
Algodon Wine Estates is a 2,050 acre (825 hectare) wine resort and real estate development in San Rafael, Mendoza, Argentina, featuring a world-class winery, 18-hole golf course, championship tennis center (7 clay, 2 grass and 1 hard court), and an award-winning Wine & Golf Lodge, Algodon Villa, and clubhouse restaurant. Algodon Wine Estates was named one of the world's top vineyard inns by Frommer's Travel Guide and one of the world's best wine resorts by Departures Magazine. Now wine lovers can buy Argentina vineyard real estate at Algodon, and build a custom luxury home on a private vineyard or golf estate. Enjoy the privilege of world-class wine production, and leave the winemaking to us. Wine lovers can own a piece of our estate, with a custom designed luxury home on a private vineyard, golf or polo estate. Enjoy world-class wine production, and leave the winemaking to us. Recent wine accolades include 90+ Parker ratings, as well as numerous gold medals from international tasting competitions.
About Algodon Mansion, a Buenos Aires luxury boutique hotel
Algodon Mansion is a proud member of Relais & Châteaux, whose fellowship represents the best of the world’s finest hoteliers, setting the standard for excellence in hospitality. Algodon Mansion is the first Relais & Châteaux hotel in Buenos Aires to be awarded this distinction. Algodon Mansion was awarded #1 Best Luxury Hotel in Argentina from TripAdvisor’s 2013 Travelers' Choice® awards, and is featured among Andrew Harper’s 2013 Grand Awards, Condé Nast Traveler’s 2011 Hot List, Travel+Leisure’s 2011 It List, and Elite Traveler’s Top Hotel Suites, among many other accolades. Algodon Mansion features a Veuve Clicquot and Davidoff Cigar Lounge. Recent guests include Roger Federer, Bobby Flay and Salvatore Ferragamo, who was quoted as saying Algodon Mansion is one of his favorite hotels.