Letter from Argentina

Hello, I hope everyone is having a great week. I’m in San Rafael at the moment, and I have to say the expansion of the golf course is moving forward quickly. You’d be amazed to see the progress; as of now you can actually see the complete layout of the course, and the views are extraordinary. I think that Ricky and the team have really done an excellent job so far. They have scheduled completion for the course by April/May 2009.

Anthony Foster has recently completed his tastings of Algodon Wine and Bombal & Aldao Wine. He says he is very impressed with two of our Malbec's, as well as our Pinot Noir, Chardonnay, and one exceptional Merlot. He seems quite pleased and excited to back our line.

José Luis Clerc also made it to Algodon Wine Estates today, and we went over the plans for the tennis area. He suggested creating a mini-centre court, and two phases of six courts each. The center court would be "in-ground", and the restaurant’s 2nd floor dining patio will have views overlooking the court; similar to a popular tennis facility in Monaco. He is confident that he can bring some very important exhibition matches, as well as the “Clerc Tennis Academy” - and really make this project a success. He was also being interviewed by a radio station while he was here and gave us a nice mention.

José will also be in New York City for the 2008 US Open as a featured commentator for ESPN. Color me impressed.

When everyone gets here in October and November for the next due diligence trips you will notice some really big changes in the Algodon Mansion and Algodon Wine Estates!

Have a good week.
Scott

Wine & Golf Village

Our Wine & Golf Village is where you’ll find the estate’s boutique winery, as well as over 60 acres of vineyards that date back to 1946. The landscape in this area is quite unique, as it was originally developed by immigrants who settled in the area many years ago. The grassy knolls that still remain from their farming and land cultivation offer beautiful views of the surrounding mountains.

Vinas del Golf’s original 9-hole golf course is also in this area. By the way, the golf course even as I write this is being expanded to 18-holes. It will be finished by May of next year, and we’re all very excited about the upgrade. The course is surrounded by vineyards, fruit trees, murmuring brooks, tree-lined roads, and a spectacular group of individual homesites and 50 casita villas.

Those who choose to live on a vineyard or orchard homesite can opt to have the land tended, harvested, and processed by our staff, if they choose.

The new tennis center sits just above this area, and will include 10 clay courts, one grass court, and a central mini-stadium. The tennis center will also include a large pool, a clubhouse and locker-rooms, as well as 12-18 townhouses. I’ll talk more about this later, as we’re still in the development stages. I’d like to post some of the preliminary renderings, as well. This is by far one of my favorite aspects of the development. I love tennis.

Village Sectors

The master plan for Algodon Wine Estates contains four main village sectors. The plan is currently laid out to include approximately 250 individual homesites, ranging anywhere between 1-15 acres each, for private sale and development. We’ll also be including about 50 villa condominiums or “casitas” within one of the areas, as well as 12-18 townhouses in another- both of which I’ll elaborate on later. The thought behind the project is that homesite owners when customizing their homes will have the option of choosing from several architectural designs that our estate planners, artisans, and design team can assist in choosing- always keeping in mind the overall integrity an Argentine vineyard estate. Determining which design works best for each individual property may be decided by several factors including location, landscape features, and of course personal taste.

The village sectors may be thought of as neighborhoods, if you will, and will include a Vineyard and Golf Village, an Equestrian Village, a Farming Village, and a Desert Golf Village. Most of the villages include homesites which are located on vineyards or orchards. Any one of these homesites is ideal for those interested in grape, olive, or fruit cultivation. Vineyard owners in particular will surely enjoy producing their own exclusive family label. Each homesite offers beautiful estate views and natural surroundings, and of course the privilege of being located within an immaculately cultivated vineyard and golf estate.

San Rafael!

San Rafael is a city located in the southern heart of Mendoza, and is home to our premiere boutique winery, and wine and golf estate development, Algodon Wine Estates. I love San Rafael. It has a European countryside appeal that includes sidewalk cafés, tree-lined roads, green spaces, vineyards and wineries, museums, and all kinds of neighboring resorts and lodges. The city sees over 300 days of annual sunshine. And even though this is a quaint and quite city, it’s experiencing a full upswing of economic, cultural, and demographic expansion. While I’m sure the development of Algodon Wine Estates certainly plays a factor in that, this expansion was happening before we even got there. The city is also home to a branch of one of Argentina’s leading universities. And with the Sierra Pintada and Andes Mountains right there as its backdrop, the region is very family friendly offering plenty of things to do. The Rio Atuel and Rio Diamante, which surround the city, are two of Argentina’s most exciting natural attractions. These offer white water rafting, canoeing, camping, horseback riding, hiking, rock climbing, recreational fishing, and just about anything else you can think of. Valle Grande, which is Argentina’s miniature answer to The Grand Canyon, is also only 20 miles away. Las Leñas, one of the greatest ski resorts on the entire South American continent, is also right there. And since a major airport is just 10 minutes away from Algodon Wine Estates, getting there is a breeze.