Gaucho Group Holdings, Inc. VINO announced the formation of Gaucho Development SRL, an Argentine venture capital company, to develop the Company’s recently acquired properties in the commercial and business districts of San Rafael, Mendoza and Cordoba. The Company estimates the potential rental income upon completion of development to be in excess of $260,000 per year.
As previously announced, the company acquired land holdings in Argentina last year in an all-stock transaction valued at approximately $2.4 million. One of the properties is located in Argentina’s San Rafael region, Mendoza and the other in the country’s second largest city, Cordoba, with an estimated market value of the combined properties totaling approximately $2.4 million. Both properties are also located on major thoroughfares with heavy pedestrian and road traffic and both with ample parking, a feature considered a rare asset in Argentinian cities.
Scott Mathis, CEO and Chairman of Gaucho Holdings, commented, “We have already secured our first tenant (a well-known, multi-unit company with a long history of operations in Argentina) with a ten-year lease on our San Rafael location. As part of the same property, which has yet to be developed, there is an adjacent area where we intend to build a two-story business center and commercial marketplace with six units on the ground floor and two units on the top floor. Similarly, on our Córdoba property, we intend to develop a two-story commercial center and marketplace with four units on the ground floor and five units on the upper floor. Because these two locations offer ample customer parking, which is a rarity in Argentinian cities in general, we believe we can place a premium on rental rates. If we also factor in an estimated annual increase in inflation, the year-on-year numbers can be significantly higher. We believe the property’s valuation has been temporarily lowered…
