Algodon Wine - Recent Praise

Great news, folks! Our Director of Project Development, Tourism & Hospitality at Algodon Wine Estates, Diego Coll Benegas, has informed us that our Cabernet Sauvignon has scored high at an American Master Sommelier wine tasting- with an 8 out of 10 rating! Our Cabernet also won the distinction of “Best Buy” of all the wines participating. We feel truly honored because the wineries we were competing against are absolutely some of the best wineries in all Argentina. The wine tasting event was hosted by Wines of Argentina.

While on the subject, I also want to mention that our wine was chosen to be featured at the 2008 Wine Enthusiast Wine Star Awards here in Manhattan in Jan ’09. This annual award ceremony is conducted by Wine Enthusiast magazine to recognize excellence in the crafting, marketing and distribution of wine and spirits worldwide. This year, Mendoza won for “Wine Region of the Year.” The ceremony planners asked 25 wineries to submit their wines to represent Mendoza at the event, and Algodon Wine Estates was one of ten selected. There are over 1,000 wineries in Mendoza…so again, quite an honor. I think things are looking pretty good for us.

Governor's Lunch at Algodon Wine Estates

I had lunch with the Governor of the Mendoza Province! It was pretty exciting, and dining with a major elected official really puts things into perspective in terms of the size and scope of our project, as well as its impact on the local economy and tourism trade. Governor Celso Jaque visited Algodon Wine Estates with the Superintendent (what we’d call the mayor) of San Rafael, Omar Félix, and they received the grand tour. We had a fine time, ate some great food at the restaurant, and we received many compliments! The Governor was really impressed with our project’s development, and was particularly enthused by the opportunities for the creation of jobs for San Rafael residents. He also made a point of expressing his enthusiasm for Algodon Wine Estates’ significant economic and cultural benefits for the entire province!

Pure & Untouched

Mendoza is truly an extraordinary place. You may sometimes hear it referred to as the “Napa Valley” of Argentina. Though I have a feeling that this common analogy will prove to be short lived, as Mendoza continues to make a name for itself, and more and more people begin to recognize it as its own thriving entity worthy of world-wide attention. Mendoza is responsible for more than 70% of the country's wine production, an impressive number when considering that Argentina is the 5th largest producer of wine in the world. As the world's familiarity with Argentine wine grows, international demand grows with it.

The wines born of this region are world-class quality, and for the most part this place is untouched. It’s still pure. The country’s wine regions spread from the foothills of the Andes Mountains, and all the runoff water from the snowcaps and glacial melt is used for irrigation for the whole region. This is some of the purest water on the planet. And I don’t mind saying that I probably enjoy a glass of Mendoza wine a little more when I think about the incredibly pure water that grew those grapes.

Mendoza has clearly experienced an explosion in popularity over the past decade and the region is ripe with new winery and real estate development. I’ve witnessed it personally; there’s obvious evidence of it everywhere down there, and it’s one of the hottest conversation topics among the locals. Northern California also saw a real estate explosion in the 1980s and the investment analogy couldn’t be clearer. Mendoza real estate prices are currently a fraction of the cost you would find in any other major wine region in the world. Vineyard estate developments are popping up across Mendoza’s landscape; and this is a trend that seems to be rapidly growing in momentum. In fact, I’ll be so bold as to say that I believe we’re one of the trailblazers of this movement.

Algodon Wine Estates

I just flew back from business in San Rafael, and realized as I read through these entries that I haven’t mentioned Algodon Wine Estates yet. So, for those of you who don’t know what Algodon Wine Estates is- let me start by saying that as I traveled more broadly in Argentina, particularly to the splendid Mendoza wine region, I stumbled upon what I felt were incredible opportunities:

-opportunities to invest in luxury agrotourism targeted to both Argentinean nationals and international tourists.
-and an opportunity to create an elite, gated, golf course/winery community.

Hence Algodon Wine Estates was born. Now let me just say here on a personal note- this has to be one of the best ideas I’ve ever had. I may even retire there myself one day. In my opinion, it’s not only an incredible investment opportunity for both myself and my business partners, it’s honestly one of the most beautiful places I’ve ever been to.

Here is the real estate tag we use that I think pretty much sums up what Algodon Wine Estates is about:

“Algodon Wine Estates (AWE) is situated in the hills of the Sierra Pintada Mountains at the base of the Andes, in San Rafael, Mendoza. Our stunning Argentine vineyard and golf estate encompasses over 2,050 acres (830 hectares) of picturesque terrain that harmoniously intermingles with multiple golf courses, lush vineyards, fruit and olive orchards, water reserves and channels, and spectacular tree-lined roads. The enormous estate also features a boutique world-class winery and tasting room, a traditional Mendocinian lodge, clubhouse, and an award-winning restaurant. Some of the property’s original structures, whose elegant rustic style adds a certain element of charm and comfort to the estate’s overall character, date as far back as 1921. The vineyard’s oldest vines date back to the 1940s and are comprised of seven varieties of grapes including Malbec; Argentina’s signature varietal. AWE’s surrounding resort and lodge frame this vineyard and golf estate, creating an alluring sanctuary of relaxation and tranquility.”

Period. This place is truly magnificent, and it amazes me that what started out as a boutique winery and golf estate- has become a multimillion-dollar homesite development project that buyers are scrambling to own a piece of. More on Algodon Wine Estates next time.

Let’s get busy!

My Trip to Buenos Aires

When I arrived in Buenos Aires in 2003, it was common knowledge that the economy had recently suffered a debilitating blow, that the country had defaulted on its national debt and that the unemployment rate was soaring. Since I am by nature a contrarian, this was part of my motivation for going. Although my expectations were somewhat tamed by media coverage about the economic and social problems, I had hoped to enjoy the city’s charms and the value of its currency which had devalued by about 70% from its previous level. In fact, I was “wowed” to find a vibrant world-class city, full of sophisticated, well-dressed and happy people, historic beautiful neighborhoods with lush green parks and public monuments, wide-open boulevards lined with buildings boasting some of the finest architecture I had ever seen. I was also enthralled with the great shopping… markets…. music…. dancing…. wonderful food, wines and entertainment. I knew then why they call Buenos Aires the Paris of South America, at a third of the price here in the States and an even larger value discrepancy in comparison to the major European cities.

My enchantment with the city prompted my interest to learn more about the local real estate market. The more I learned, the more convinced I became that there was a huge opportunity, that prices were extremely low compared to other leading cities and with the economy and tourism rebounding strongly, many elements of risk had already greatly subsided. I was determined to take action.

But that’s enough for today. Next time I’ll be talking about how my vision has indeed been realized by my companies (InvestProperty Group and DPEC Partners) in the creation of a luxury boutique hotel (“Algodon Mansion”) in Buenos Aires, and then later a very beautiful wine and golf resort (“Algodon Wine Estates”) in San Rafael- the southern heart of Mendoza.

Life is good!