Editorial from Scott Mathis, Chairman & Founder - The Algodon
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The Algodon

Editorial from Scott Mathis, Chairman & Founder

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Friends,

For those of you unfamiliar with InvestProperty Group (IPG), I’d like to take this opportunity to briefly explain who we are. IPG is a real estate development firm based in New York City, with affiliate offices in Buenos Aires, and Mendoza, Argentina. Our primary goal is to open Argentine real estate markets to individual investors by structuring investment partnerships and providing access to opportunities traditionally only available to institutional investors. Our affiliate offices provide an unequivocal strategic advantage in this sector, and our experienced network of legal and real estate professionals have forged a path for foreign investors by assuming the responsibilities entailed in procuring Argentine real estate investments. IPG currently provides access to institutional real estate acquisition and development opportunities in Buenos Aires and Mendoza under our exclusive brand identity: Algodon.

Even as I write this, news of Argentina’s rapidly recovering economy hits my inbox almost daily. Argentina’s defaulted bonds are trading at a three month high this month, and its trade surplus jumped seven-fold in August (due to high global prices for its grains and oilseeds- Argentina is one of the world's top suppliers of soy, corn and wheat) to reach a record $2.25 billion. The Argentine government forecasts a trade surplus of $12.23 billion this year and $11.98 billion next year, according to their 2009 budget bill. The government also predicts an economic growth rate of 4% for 2009 (the Argentine economy grew by at least 8.5% in each of the last five years, and 2008 will end with an estimated 6.6% growth), but that 4% is still considered to be more than satisfactory in the global context. Some days (especially nowadays) it seems our friends in Argentina are doing better than we are here.

Argentina’s real estate market is unquestionably affected by these same trends. The country’s economy is expanding at breakneck speed, taking the real estate market with it. Due to the strong dollar in Argentina (perhaps one of the only places left where the dollar is strong) real estate prices are affordable to many US investors. Currently cities such as NY, London, and Paris have real estate values equaling anywhere from 7 to 10 times more per square meter than properties found in Buenos Aires’ most distinguished neighborhoods. The Sunday Times (UK) reported that in 2006, Buenos Aires property prices rose by 37% from Jan to Oct. Foreign investors have certainly noticed this trend, and demand for these prime Argentine real estate opportunities is on the rise. And with Argentine tourism booming (the country has positioned itself as Latin America’s leading tourist destination in 2007, with over 4.5 million visitors) we believe that our luxury boutique hotel, Algodon Mansion (in Buenos Aires) and our wine & golf luxury resort and private homesite estate, Algodon Wine Estates (in San Rafael, Mendoza) should both fare well.

The development of our properties in Buenos Aries and San Rafael are both advancing at an extremely exciting pace. Algodon Mansion, should see its grand opening in a few short months, and is already enjoying plenty of anticipatory Buenos Aires and US press. Algodon Wine Estates is also seeing its own fair share of media mentions as we complete the addition of the back 9 holes of the golf course, and begin preparations for the first phase of construction for our new championship tennis center, polo fields, and equestrian center.

I look forward to seeing you all in Buenos Aires for the launch of Algodon Mansion, and while there be sure to hop on the short flight to our San Rafael estate for a little summer golf (don’t forget our winter is their summer!) and wine tasting at our Algodon Winery along the Mendoza wine route!

--Scott Mathis

For weekly insights and updates on our property developments, be sure to subscribe to Scott's personal blog at www.ScottMathis.com. 

Scott Mathis is the founder and Chairman of DPEC Partners, and as its driving force, he continues to create entrepreneurial ground-floor investment opportunities for high net-worth investors. With over 25 years in the financial industry, he has extensive experience in business, investment and management in both North and South America, and his wide-ranging entrepreneurial endeavors include conceiving and developing the luxury brand, Algodon. His experience includes positions at Merrill, Lynch, Pierce, Fenner and Smith, a partner at Oppenheimer and Company, as well as positions at Gruntal, Alex Brown and Sons, and The Boston Group. He is also the founder of DPEC Capital, Inc. (member of FINRA, SIPC, and SIA), InvestProperty Group, LLC, Algodon Properties, and InvestBio, Inc. Mr. Mathis has served on numerous boards throughout his career including the Board of Directors of The Vaccine Company and Kinexis, Inc. (which is currently performing early stage research for an Alzheimer's vaccine). He also serves as an observer on the Board of Directors for AmpliMed, Corp.