Wathemala is located at Guatemala 6090.

With global demand & changing consumption patterns, olive oil has grown into a $10 billion dollar industry.

Of all the agribusiness investment opportunities in Argentina and Uruguay, olive oil estates are some of the youngest and most promising. Increasingly health conscious consumers in foreign countries are stoking global demand for olive oil which has tremendous health benefits including heart disease protection and colon cancer prevention. Industry publication Olive Oil Times says Argentina has capitalized on growing demand in both aging and emerging markets like China and recent droughts in the Mediterranean to emerge as a major producer of aceite de oliva. The online magazine features an interview with Luis Feld, agribusiness expert, former president of the Terranova winery and current owner of a large olive oil estate in the Cuyo region that produces the Vero Andino product line. Even though Feld only planted his first trees five years ago, the success prompted his group to launch a company that markets and sells fractional ownership opportunities in other Cuyo-based olive oil estates. With global consumption approaching 3 million tons per year and average price per ton around US$3,600, we are talking about a roughly US$10 billion industry. In addition to annual rents of 18-20%, the group touts olive oil fractionals as “an attractive alternative for those who believe land, water and agribusiness are strategic businesses of the future.” For more information on agribusiness opportunities in Argentina and Uruguay, visit our archives or download the July 2010 edition of InvestBA Privada.

Who needs a boom? "Estabilidad" suits builders and buyers in the Buenos Aires real estate market just fine.

Recent headlines regarding Buenos Aires real estate sales activity have been improving steadily this year, and La Nación says builders are starting to feel equally optimistic. During the first five months of 2010, the construction industry posted a 10% increase in new projects under development, while the sale of condominiums and single-family homes advanced 7.1%, according to the Universidad Argentina de la Empresa (UADE). The UADE’s prestigious Economics Institute compiled the data and forecast “stability” across-the-board for real estate sales, median prices and inventory of rental units. The analysis of all construction segments found the largest January-May increases in three sectors: oil and gas construction (+41%), road construction (+10.4%), and housing construction (+9%). The UADE study offers a detailed analysis of the local real estate market where new housing inventory grew 7.1% in Capital Federal and Greater Buenos Aires. The rise in inventory was accompanied by an increase in median prices, especially in the Northern Corridor of Buenos Aires, where new condominium prices gained 9.7% in U.S. dollars compared to the same five-month period in 2009. Median prices of existing inventory in BA posted a 9.3% gain. The greatest increase took place in the Recoleta neighborhood where the average price per square meter for new construction units rose 11.2%. Other BA barrios popular with foreign buyers posted more modest annual price increases including Palermo (+1.5%), Belgrano (+1.2%) and Núñez (+1.2%).  For more information about Buenos Aires real estate opportunities, search our archives and download the July 2010 issue of InvestBA Privada. (Full Story in Spanish).

With 37 million clients and 5,800 branches, Santander is the leading bank franchise in Latin America.

If you had any doubts about where the smart money is moving globally, you might want to take a look at Grupo Santander, the largest bank in the Euro-zone and one of the largest banks in the world. In recent interviews with everyone from Bloomberg to El País, Santander officials are understandably bullish on Argentina, Brazil and Latin America in general…so much so bank executives feel the region will outperform Asia in the coming years. Santander’s Director for the region Francisco Luzon sees the XXI century as Latin America’s inflection point: “In this century, Latin America will move beyond being a ‘developing’ region. Latin America has talent and structural competitive advantages that will make it a winner in the XXI century.” Luzon believes Latin America is the region best positioned to benefit from the process of globalization, while banks like Santander are well positioned to capitalize on the continued bancarización of LatAm. Santander estimates the financial systems of the seven core Latin countries—Brasil, México, Argentina, Chile, Perú, Colombia y Uruguay—have a current valuation of US$500 billion and could reach $1 trillion by 2015. If full-year projections for 2010 are any indication of what’s to come, it’s easy to understand why a bank like Santander sees the future in Latin America. According to Bloomberg, the region will account for 45% of the bank’s profit this year, up from 39% in 2009.

This week's Tramando Nights showcased BA designer Martin Churba's designs for the masses.

On July 12 and 13, renowned Argentine designer Martin Churba hosted Tramando Nights, a sample sale of sorts sponsored by L’Oreal and Chandon, in his gorgeous Recoleta showroom.  Guests sipped champagne, received complimentary makeovers, and tried on deeply discounted pieces from past Tramando collections. Churba, who considers himself a textile designer above all, creates pieces that are completely unique yet manage to retain an undeniably edgy elegance. More than simple garments, his designs are true avant garde works of art. The quality workmanship of each piece is evident in the intricately woven rubber material that the designer utilizes in the creation of his collections. The result is structured clothing that is eye-catching but still flattering, highlighting the wearer’s best features and making her truly stand out in a crowd. Which is what every woman wants, isn’t it?

Tramando, located at Rodriguez Peña 1973, celebrate’s its 7th anniversary this August. Look for more on the designer in our September issue of InvestBA Privada and be sure to follow VanityBA on Twitter.

Crescente: Bovespa President Edemir Pinto & Banco do Brasil CEO Aldemir Bendine at this month's offering.

With the 2014 World Cup and 2016 Olympics on the horizon, there’s no question about all eyes being on our neighbor to the north. With the world poised to descend on Brazil in the coming years, it is interesting to note how Brazil is beginning to look beyond its borders and engage with foreign countries. Right now, for example, the slopes of Bariloche are teeming with well-heeled paulistas and cariocas, and lilting Portuguese accents can be heard around BA’s finest restaurants and gallerias. But the Brazilian Foreign Investment Experiment (BFIE for short) is starting to expand well beyond tourism and into the boardroom with Argentina being the logical first step, says the Latin Business Chronicle. “The country’s corporate sector has embraced globalization,” writes LBC, “and many Brazilian companies have chosen neighboring Argentina for their first foreign venture. To date, over 400 Brazilian companies have done JV’s or outright purchases of Argentine companies in sectors ranging from cement to beverages to auto parts manufacturing. Now many olhos brasileiros are focusing on opportunities in the banking sectors. The analysts and professors interviewed by LBC describe the phenomenon of “follow sourcing” as a logical pattern where Brazilian banks are increasingly following their best corporate clients into Argentina to fund the growth and expansion of their Argentina subsidiaries. University of Palermo professor Rodolfo Rapán puts the importance of Brazil’s FDI in context: “Since 2003, an average of about $4 billion in foreign funds has flowed into Argentina each year, and 40 percent of those funds have come from Brazil.”  (Full article in English)

Back from the depths of 2009, BA's real estate sector posted a 41% gain in transactions in May.

A story we’ve monitored closely since the end of last year is the recovery of the BA real estate sector. After an abysmal 2009, December finally offered a positive note; a trend that continued during the first four months of this year. Now the newly-released housing data for May suggest BA’s property rebound is in full swing. According to the  BA Notary Association, the sale of properties jumped 41% in May compared to a year ago, while the value of all real estate transactions rose 91%. Cronista says the second statistic reflects the large number of buyers taking delivery of high-end units that have been under construction for the last 2-3 years. The 5,165 real estate transactions in May were valued at 1.908 billion pesos argentinos or US$484.82 million. While local analysts say signs of a recovery abound, it’s worth remembering the year-over-year basis of comparison: the first six months of 2009 was one of the worst periods for BA real estate. As the global financial crisis gathered steam, confidence was shattered and buyers were scarce in the Southern Cone. Now a year later, a rare global commodity has returned to Argentina and Uruguay: optimism. The May housing numbers show units priced between US$60,000 and US$220,000 accounted for 38% of all sales, while units priced below $60,000 represented 56% of all transactions. The sale of units priced above US$220,000 doubled from 3% last May to 6% in May 2010. (Full Story in Spanish) For more information about Buenos Aires real estate trends, see our archives or download the July issue of InvestBA Privada.

Any Questions?: Much like his country, striker Diego Forlan is slowly silencing Uruguay's skeptics.

One of the greatest story lines in this year’s World Cup has been Uruguay. When the tournament started June 11, many futbol experts believed they would lose in the First Round to the likes of mighty France and Mexico. All eyes and wagers were on perennial powerhouse neighbors Brazil and Argentina. When Uruguay advanced to the Round of 16, we contrasted the Maradona-stoked cockiness of Argentina with the humble, workmanlike approach of Uruguay. Now both neighbors are home and Uruguay is two wins away from hoisting its third World Cup. Marie Elena Martinez, a travel writer for the Miami Herald proves Uruguay’s skeptics are alive and well off the field as well. “A lover of big cities, I arrived in Montevideo, Uruguay with low expectations,” she writes, “I wasn’t sure Uruguay could offer anything different than South American spots more popular with tourists — Chile, Argentina and Brazil.” Arriving at Montevideo’s ultra-modern Carrasco International Airport is often a foreign visitor’s first taste that expectations will soon be exceeded. Over the course of her visit, Martinez discovers the beaches of Pocitos, the Mercado del Puerto, the Plaza Fabini and the 14-mile winding waterfront, La Rambla. By journey’s end, her confession is a familiar refrain among one-time doubters in the Switzerland of South America: “I was exhausted, but no longer skeptical. Yes, absolutely: Uruguay.” For more information about investment opportunities in Uruguay, visit our archives or download the July 2010 edition of InvestBA Privada.

Leyenda Urbana: La Nación debunks the Top 10 Myths about the Puerto Madero neighborhood.

Puerto Madero is a favorite real estate topic on InvestBA for a variety of reasons. Superlatives make for interesting reading, and Puerto Madero (PM) has certainly generated its fair share since incorporation and waterfront transformation commenced in November 1989. La Nación throws a skeptical eye at those superlatives and culls the Top 10 Myths about Puerto Madero. #1.) It’s the youngest neighborhood to be incorporated in BA. False. Parque Chas in December 2005. #2.) It’s the most expensive BA neighborhood per square meter (sqm). Debatable. While PM units sell for an average of $3,800/sqm and some towers fetch $6,000/sqm, the average sales price in Barrio Parque is $4,750/sqm. #3.) Units with river views command higher prices than city views. False. Most owners surveyed return from the office at dark and would rather look at La City than La Plata Oscura. #4.) There are more offices than residential units.  False. While true initially, that trend began to reverse in 2005 and today the number of residential sqm (1.303MM) is practically double the amount of office space (659K). #5.) Foreign buyers own the majority of new high-rise units. False. 70% of the buyers are still Argentines, although that is changing as more Europeans shift funds out of the battered Euro-zone and more Americans discover the quality of life and cost advantages of living in Buenos Aires, Argentina and Uruguay. For the complete Top 10 List in Spanish, visit La Nación or download InvestBA Privada for the English version.

With private expenditure and GDP growth, Wells Fargo sees signs of a recovery in Argentina.

The buzz about Argentina seems to be having an impact on investors of all stripes. After Sunday’s 3-1 defeat of Mexico, global betting sources say the Albiceleste’s odds of winning the World Cup improved to  15/4, third only to Spain and Brazil. Whether sports gambling qualifies as “investing” is certainly open to debate; however, a more sober cadre of long-term investors are also starting to take note. San Francisco-based financial giant Wells Fargo featured an unlikely subject for this week’s front-page Economic & Financial Commentary: Argentina. The analysis showed Argentina’s 7.9% growth rate in the 4th quarter of 2009 followed by a healthy 6.8% year-over-year rate in 1Q10. Meanwhile, Argentine private consumption expenditures which rose a mere 0.5% in 2009, grew 7.3% in the first quarter of this year alone. The nation’s spending recovery is also reflected in the current trade balance, as imported goods and services jumped 30% in the first quarter. Unfortunately, exported goods and services only rose 4%, although Wells Fargo notes the strength of the Brazilian economy as a contributing factor in Argentina’s recovery. While over-dependence on Brazil’s fortunes is a concern, the ongoing China soy conflict highlights the need for 1.) less federal government intervention and 2.) cultivation of more international trade relationships in the Americas, the Euro-zone and Asia. To read the full Wells Fargo Securities report, click here.