Source: Algodon Wines & Luxury Development Group
NEW YORK, NY – (January 15, 2014): The price of vineyards in the Mendoza region of Argentina has recorded growth of up to 25% annually, which ranks the highest increase in property valuation among its peers in other world wine centers, according to Knight Frank’s 2013 Global Vineyard Index, released last month. Knight Frank annually tracks the price performance of lifestyle vineyards across key winemaking regions around the world. Its 2013 edition reveals compelling facts about the continued growth of Mendoza's value potential, as well as the growing trend of lifestyle vineyards around the world, including one such as Algodon Wine Estates located in San Rafael, Mendoza, Argentina.
“Knight Frank 2013 Global Vineyard Index illustrates some exciting details, while affirming our position, on the investment potential of lifestyle vineyard properties in Argentina, like Algodon Wine Estates,” says Scott Mathis, Chairman & Founder of Algodon Wines & Luxury Development Group. “This news is long overdue, but we are delighted about this very good news coming out about Argentina. We have partnered with some very talented winemakers including the rising star, Mauro Nosenzo, and Master of Wine, Anthony Foster, as well as the world-class Marcelo Pelleriti, who is the only Argentine winemaker to ever receive a perfect score of 100 points from wine critic Robert Parker. From the beginning, our vision for Algodon Wine Estates was to create the highest quality, internationally recognized wines, and to be associated with winemakers of world-class caliber. Our thought has always been that if we could produce great wines, then that alone could have a positive overall effect on the value of our real estate holdings and lifestyle vineyards, as well as our brand, and everything Algodon. Knight Frank’s 2013 Global Vineyard Index adds even more to the equation, by asserting to the world what those of us already in Argentina have known for quite some time. Mendoza vineyard real estate prices are still accessible to many international real estate investors, and can be found here for a fraction of the cost of comparable properties around the world. We believe these values have the potential to show exponential growth and tremendous long-term appreciation.”
Key highlights on Argentina vineyard real estate from the Knight Frank report include:
* “The price of vineyards in 'new world' locations such as Argentina have recorded some of the strongest increases. The Mendoza region in Argentina ranked the highest in annual terms, recording growth of 25%.”
* “The attraction of a vineyard home has not escaped the world's top developers. New estates set around vineyards and olive groves are being built from South Africa to Argentina and now Spain. These developments allow buyers to purchase a property on a turnkey basis with owners determining the level of input and involvement they want. The draw being that buyers can tread the grapes, design the label or research the grape varieties without the hassle of maintaining a fully operational vineyard and winery.”
* “Knight Frank analysts expect the flow of both capital and knowledge from established to emerging markets to increase. Investors in Napa Valley for example, where a vineyard can cost $135,000-$600,000 per hectare can acquire vines of a similar quality in Argentina for $30,000 per hectare, providing many with a tempting opportunity to expand their horizons and their landholdings.”
* “Lifestyle vineyard owners will continue to be motivated by the associated benefits of living in a picturesque setting, getting a return from their land and the enjoyment of learning new skills and techniques.”
* Knight Frank's research also suggests that approximately 40% of Mendoza's lifestyle vineyard buyers in 2013 were foreign. This is on par with prime lifestyle vineyards in other world wine centers such as Napa, Bordeaux, Loire Valley, and Chianti.
About Algodon Wine Estates
Algodon Wine Estates is a 2,050 acre (825 hectare) resort and vineyard real estate development located in San Rafael, Mendoza, Argentina, which was named one of the world's 4 best places to retire by CNN Money / Fortune Magazine. The estate features a world-class winery, an 18-hole championship golf course, a championship tennis center (7 clay, 2 grass and 1 hard court), a celebrated clubhouse restaurant, and the award-winning accommodations of the Wine & Golf Lodge and the Algodon Villa. 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. Algodon’s Senior Wine Advisor, Marcelo Pelleriti, is the first Argentine winemaker to receive 100 points from Robert Parker. 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.
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.
The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements. This press release may contain certain statements of a forward-looking nature relating to future events or future business performance. Any such statements that refer to Algodon Wines & Luxury Development Group (Algodon Group) and its respective subsidiaries ("the Company") estimated or anticipated future results or other non-historical facts are forward-looking and reflect the Company's current perspective of existing trends and information. These statements involve risks and uncertainties that cannot be predicted or quantified and, consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. The forward-looking statements speak only as of the date set forth above. The Company undertakes no obligation to update publicly any forward-looking statement, whether because of new information, future events or otherwise.
Eric Stear, Corporate Communications & Marketing Manager