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

Editorial from Scott Mathis, Chairman & Founder

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Hello Everyone,

It's shaping up to be a great summer!  I'm very excited about the start of construction for the tennis center which just had its groundbreaking a few weeks ago.  Rubén Barsamian has informed me that the complete "earth movement" and leveling has been completed for the tennis courts.  Supplies for building the courts are being delivered and court construction will begin this week.  Gerhard Heusch had a meeting with the tennis contractor and he mentioned the courts would be ready for match play in 90 days...of course the center court will take additional time.  Jose Luis Clerc is also very excited and can't wait until everything's up and running.  He's very much looking forward to opening the Clerc Tennis Academy at Algodon Wine Estates, and hosting some major tournaments, exhibition games, and clinics.

In the mansion, the kitchen equipment has for the most part been installed, and some of the final molding has been mounted in the Grand suites.  The limestone flooring and glass wall (with the backlight) have been installed on the restaurant's outside patio, and the front façade of the building is looking incredible; way beyond first-class.

If you happen to live in Manhattan, pick up a copy New York Magazine Weddings/Summer 2009/Special Issue from your local newsstand. Our San Rafael, Mendoza property is promoted as a honeymoon destination on page 121.  This special biannual issue has a circulation of 75,000.  Not bad at all.  Algodon Mansion has also been endorsed in the latest issue of Air France Magazine. 

A recent article from the NY Times, titled Investing in Wine: Now May Be the Time, says; "...experts agree that it is a good time to buy investment-quality wines. And though prices fell in the last four months of 2008, prices in the first four months of 2009 were heading back up."  No coincidence then in the timing of this AP article last week:  Survey: Most economists see recession end in '09.  More than 90% of these economists seem to agree to this fact, and the other 10% generally say it'll be over by the first quarter of next year anyway.  Forecasters evidently believe that the worst is already behind us, and that President Obama's $787 billion stimulus package factors into the expected economic revival.  It's worth mentioning here then that Argentina's President Cristina Fernandez recently announced her own $1.5 billion mortgage lending plan (remember the nationalized pension funds?) to boost their real estate and construction sectors.  I find this particularly interesting because Argentina's mortgage market has for the most part been nonexistent up until now. 

I'd also like to share this piece from WineSur.com which tells us that despite a world-wide decline in international tourism, foreigners visiting the Argentine Wine Route rose by 15% in 2008.  That's 1.2 million tourists.  In fact, between 2004 and 2008, tourism along the Ruta del Vino grew 142%.  All good news for us as it just reinforces our confidence for our exclusive 2,050-acre development, Algodon Wine Estates, in San Rafael, Mendoza.  With tourism numbers up this much during a world-wide economic slowdown, just imagine the numbers once the recession is over.  The Argentine Post has created a very interesting graph that illustrates the rising annual number of American expats applying for Argentine citizenship since 2000.

Most of these people have no doubt been swayed by Argentina's comparative cost of living and an increased standard of living as a result.  You can live well down there- very well- and many can afford luxury properties and lifestyle amenities (in world-class locations such as Buenos Aires and San Rafael, Mendoza!) which would simply be economically unfeasible here in the states.  This is what I've been saying all along. 

On that topic, there is a nice piece on Buenos Aires in the June issue of the SmithsonianMag.com.  The article talks of how- thanks to the weak peso and its lure- foreign entrepreneurs and expats are playing a big role in how Buenos Aires is evolving and redefining itself in the millennium.  The write-up gives a history lesson on immigration into Argentina, as well as the country's political and economic climate.  I think my favorite part of the piece is actually a postscript of sorts, where the Smithsonian interviews the author of the article Daniel Politi, himself being an expat in Buenos Aires.  He shares some very interesting insights.

What's next for Algodon?  Check back with us next month for a special update from Diego Coll Benegas (Algodon Wine Estates' Director of Project Development, Tourism & Hospitality).  We're currently looking into cultivating a truffle farm on our San Rafael estate, which will certainly add uniqueness and value to our project.  The excellent soil quality in our district of Cuadro Benegas may be just right for this one-of-a-kind opportunity!  Imagine cultivating black truffles on individual lots and finca farms, where owners of these choice estates will enjoy their own lovely vineyards alongside walnuts and truffles.  Who wouldn't want that?  Once again, our goal is to create a luxury lifestyle enclave producing the best wines, the best olive oil, and super-recreational activities including championship golf, tennis and polo!

We have a lot going on this summer!  If you're healthy, you're wealthy- make sure to get out there and enjoy the sunshine with your families!

--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.