Emirates to Argentina

The seduction continues when Emirates commences daily service to BA and Rio in January.

In news that will please Washington as much as our booming relationships with China, Argentina and Uruguay are all enjoying stronger trade and investment ties with the Middle East.

Samantha Pearson’s article in FT focuses initially on Brazil’s record beef exports to Iran and quickly expands to include Argentina and Uruguay in the Middle East equation. Commodity exports like wheat still top the list, she writes, but the relationships are poised to broaden into sectors as diverse as aircraft, franchises and mining.

Pearson credits South America’s chameleon-like adaptability as the key to reaching 350 million consumers in the 22 countries of the Middle East. Just as China continues to broaden investment in the region to areas like finance and infrastructure, so to will Mercosur countries begin offering a wider range of value-added goods and services in the Arab world.

South America has a way with seduction, and so far good food, solid franchises and luxury brands are leading the love parade into the hearts, minds and stomachs of Middle East consumers. “Middle Eastern investors are looking for brands,” writes Perason who singles out Starbucks, Brazilian churrascarias and polo clothing mecca La Martina which now operates stores in Kuwait, Lebanon and Dubai. (Full Story at FT.com)

La Martina India Jersey

Argentina & India played a symbolic polo match as part of this year's Festival of India in Buenos Aires.

From Bollywood in BA to the Gujarat Builders Argentina Trade Mission to Mayor Macri announcing Tata’s Arrival in the BA Tech District, InvestBA has charted the strengthening ties between Argentina and India in 2010.

Now Financial Times says these bilateral outreach efforts are not only paying cultural dividends, the two countries are rapidly forging a two-way trade relationship worth US$3.8 billion, up 150% from last year alone.

Like China, India’s insatiable demand for food is stoking Argentina’s export engine to the tune of $1.8 billion. Yet that is where the trade similarity with China ends. When China seeks to expand the relationship by investing mightily in Argentina’s rail infrastructure, it is purely in their self-interest of accelerating the export pipeline. India, conversely, takes a more enlightened route by encouraging Argentina to diversify and broaden its export offerings to India.

“It doesn’t stop at food,” writes FT’s Jude Webber. “Biodiesel (both to import and to produce) and wood and paper pulp are in demand by India. Tata is evaluating joint ventures for making cars in Argentina. And there are mining, steel and other ventures too. The recent hit Argentine cartoon Gaturro was co-produced by India’s Toonz Animation.”

More recently, the Festival of India in BA this month brought together over 250 Argentine businessmen and dozens of members of the Confederation of Indian Industry who are exploring joint ventures. The annual Festival was a fitting culmination of an important year in the Argentina/India relationship, one that is poised to boom in the coming decade. (Full FT article)

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Bariloche Casa

A 4-bedroom home in Bariloche listed for US$240,000, roughly one-tenth of a similar-size home in Aspen.

As winter turns to spring in Argentina, ski and snowboard fanatics are enjoying the final days of the 2010 Season in Bariloche, San Marti­n de los Andes and Villa La Angostura.

Heavy snowfall this month made for ideal conditions and helped resorts like Chapelco push season’s end to early October. So when the snow stops falling next month, will tourists and investors lose interest? Not likely, says Laura Henderson in a new Financial Times House & Home article.

In “Foothill Foothold” Henderson describes the year-round appeal for outdoor enthusiasts of not just San Carlos de Bariloche, but the entire Lakes region extending north across Nahuel Huapi Lake to Villa La Angostura and San Martín de los Andes in the north.

Wealthy Argentines already enjoy Patagonia’s wild open spaces,” writes Henderson adding, “Now Americans, Brazilians and Europeans are gaining a foothold, lured by favourable prices, upscale homes on a par with those found in Aspen or Whistler for 50-60 percent less,  a tax-light regime and a buoyant rentals market.”

Scanning through property listings in the region, the 50-60 percent estimate may be a tad conservative when you consider new construction condominiums can be found in the Patagonia for US$70,000 and large single-family homes purchased for US$250,000. With one bedroom condos in Downtown Aspen selling for $1.5 million and West Aspen homes fetching US $3-4 million, the Colorado:Argentina discount is probably closer to 90%. (Full Story)

For more information about Argentina real estate opportunities, visit our archives or download the new issue of InvestBA Privada.

Polo Spectators in Buenos Aires

Savvy marketing and global events are boosting polo's appeal with the masses. (Photo: Fabiano Goldoni)

It may be winter here in Argentina, but the world’s polo elite continue the 2010 tour on the Northern Hemisphere fields of the U.S. and England. And if there’s a common theme we’re seeing on this year’s circuit, it’s the continued marketing maturation and well-coordinated attempts to broaden the game’s appeal to a much wider audience.

First it was the Polo World Cup on South Beach, then Nacho Figueras joined forces with Moet Hennessey for New York’s Veuve Clicquot Polo Classic, and finally tens of thousands turned out for London’s second annual Polo in the Park in June. The Financial Times says these events clearly demonstrate polo’s marketing evolution from game for the elite to sport for the masses.

“Initiatives are under way to make polo more accessible and to create a more compelling business proposition, but at the same time,” FT adds, “there are signs that the game is healthier than ever at the grassroots.” David Woodd, the CEO of the Hurlingham Polo Association says shaking up polo’s traditional patron-based funding system could open the door to expanded global TV coverage and greater fan loyalty.

The creation of a true Polo World Cup would also be a dream event for fans and marketers alike, says Woodd, even though the outcome may be somewhat predetermined. “We need a World Cup for polo, Mr Woodd says, “and to just accept that Argentina would win it.” (Full Article)

Barracas

Investors, government officials and developers of projects like Moca see the potential in Barracas.

You can take the boy out of the barrio, but can you take the barrio out of the barrio? That’s the question posed by Jude Webber in a Financial Times analysis of one of Buenos Aires’ rising stars, Barracas.

In addition to being three of the most expensive neighborhoods in the city, Webber says, Belgrano, Palermo and Recoleta have lost much of their neighborhood feel or barrio-ness, as working-class families gave way to new commercial and residential construction over the past decade. During the same period, grittier and more industrial Barracas, saw factory closures and falling property values.

Those lower prices, along with urban renewal efforts by the City of Buenos Aires government, are now attracting more portenos and foreign investors. Considering it was home to some of BA’s wealthiest families in the 19th century, there is classic architecture on par with Montevideo’s Ciudad Vieja.

The abundance of closed factories is also drawing the interest of residential developers. Projects like The Moca, a massive urban redevelopment of an old factory, highlight the potential that exists in Barracas. As one analyst tells Webber, “Barracas has excellent potential. There are millions of square meters available and the possibility for multimillion reconversions.” One New Yorker who owns a converted B&B sums up the cool Barracas vibe: “This neighborhood is definitely up and coming. But I would not want to see it change totally. I like it a little dirty and arty.” (Full Story)

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