Salon Inmobiliario Punta del Este

Over 100 brokers and developers participated in SIPE 2011 at the Conrad in Punta del Este.

Of all the takeaways gleaned at the 2011 Salon Inmobiliario last week in Punta del Este, we were most impressed by the 2010 summary confirming our long-held belief the smart money is moving north of Punta along the Tango Coast of Uruguay from Maldonado and increasingly into Rocha. One of the highlights of the four-day Real Estate Expo held at the Conrad was the presentation made by Tourism Director Horacio Di­az confirming the northern migration of deals, developers and dollars.

In 2010, the value of all real estate sold in Maldonado reached US$1.279 billion, a 53% increase over 2009. Of that US$1.279 billion, just over US$580 million were transactions taking place in Punta del Este, another 53% increase over 2009. The “Rural Zone” north of Punta encompassing oceanfront destinations like Manantiales, La Barra, Garzon and the beaches surrounding Jose Ignacio ranked number two with sales of US$263 million in 2010, a record-setting 158% increase over 2009 for a two-year total of US$365 million.

The other highlight of the event was the pro-Uruguay, pro-development speech by Vice President Danilo Astori. InvestBA has chronicled the positive outreach of the Mujica administration to the developer community, and Astori’s comments were further validation of their shared foreign investment policy goals. “The national project for Uruguay is a project of openness to the world,” Astori said. “It’s a bet on the promotion of the real estate sector, whose numbers we are celebrating today as proof of its formidable growth and expansion.”

For more information about investing in Uruguay, download the new issue of InvestBA Privada.

Argentina is China's Next Investment Frontier

Chinese investment in Argentina has gone from millions to billions overnight. Click to enlarge. (Source: FT.com)

A Wall Street strategist appeared on CNBC last week and when asked in which sectors and companies to invest he replied, “Buy what China wants. The world story hasn’t changed. The place where the growth is is Asia, and the things Asians want are the things that are going to grow in the West.

Argentina knows this first-hand, and the level of Chinese investment here has gone from millions to billions overnight. In a detailed look at the breadth and depth of Chinese holdings on and under Argentine soil, London’s Financial Times today labels the country along with Brazil as China’s New Investment Frontier.

Total Chinese investment in Argentina was a meager US$13 million in 2004, writes Jude Webber, but that figure has grown to US$2.45 billion today in everything from silver in Salta to motorcycles in Cordoba to electronics in Tierra del Fuego. The oil and gas sector probably holds the most potential for both countries in terms of profit potential, but it’s also the most heavily taxed and regulated. “Not a problem,” one Cnooc executive tells FT, expressing optimism there will be positive changes in 2011, the pivotal presidential election year.

Other major Chinese investments in Argentina announced this year include plans to invest US$10 billion in Argentina’s rail network (a move that would accelerate the supply chain of soy and other commodities) and China Railway International’s possible participation in building a new BA Subte line. If approved, Eximbank China would finance the US$1.5 billion G-line extending from Retiro to Cid Campeador. (Full Story at FT.com)

For more information about Chinese investment in Argentina, download the new issue of InvestBA Privada.

Uruguay Estancia in José Ignacio

This José Ignacio residence is currently listed at US$2.9 million. (Photo: New York Times)

The New York Times’ Great Homes & Destinations made the annual pilgrimage to Uruguay, and this year they wandered back to the beach. While last year’s featured property was a private estate in Garzon, this year Punta del Este takes center stage and the upscale oasis of Jose Ignacio to be specific.

The chosen property is a 4-bedroom residence designed by Argentine architect Guillermo Alonso situated on a 2.5 acre parcel complete with swimming pool and parrilla. Virginia C. McGuire describes the home’s rustic charm rising from the polished concrete floors.

“The great room has 20-foot ceilings and a wall of French doors that lead out to the terrace. The kitchen has an island with a cutting board made of reclaimed pine. The cabinets are also pine, and the 80-year-old porcelain farm sink was found in a nearby antique shop. The counters are of Carrara marble. Maid’s quarters are off the kitchen. The four bedrooms, two on each side of the great room, have exposed stone walls, French doors and en-suite bathrooms.”

McGuire consults with local brokers who confirm Jose Ignacio’s reputation as one of the most expensive markets in Uruguay ($370/SF and up), followed by trendy La Barra ($260/SF) and more affordable Punta del Este ($170/SF). As for who’s doing the buying, Argentines and Brazilians still rule the roost, but locals confirm “an increase in interest from farther afield: Europe, the United States and Australia.” (Full Story)

For more information about Punta del Este real estatedownload the new issue of InvestBA Privada or contact us directly

Pestana Buenos Aires Golf Club

The US$40 million Pestana Buenos Aires Golf Club is scheduled to open in late 2012.

A Portuguese hotel group and one of Argentina’s most influential holding companies are partnering to build a US$40 million hotel/condo golf complex on the outskirts of Buenos Aires. Pestana Hotels and Sociedad Macri (Socma) made the announcement yesterday, and the Pestana Buenos Aires Golf Club is scheduled for completion in late 2012.

According to Silvia Stang with La Nacion, the complex will feature 115 condominiums, 68 homes grouped into 3 residential villages, and a 120-room hotel with 15 larger apartment-hotel units. Gianfranco Macri, brother of Buenos Aires Mayor Mauricio Macri, says the new project reflects a shift in priorities for Socma which is focusing on renewable energy, agro-industry and real estate development. Outside of Argentina, Socma has a partnership with Chinese auto manufacturer Chery in Uruguay and is exploring renewable energy opportunities further north in Brazil.

For Pestana, the new project demonstrates their conviction in the current strength and future growth of tourism in Argentina. In addition to their four-star hotel in Downtown BA, Pestana also operates a 23-room hotel in Bariloche. Pestana PR Director Mari­a Joao Naughton told La Nacion the Company plans to expand the Bariloche property to 110-rooms while exploring new hotel opportunities in Mendoza and Montevideo where Sociedad Macri is looking to build new mixed-use projects.

For more information about real estate investment opportunities in Buenos Aires, Argentina and Uruguay, download the new issue of InvestBA Privada.

VW Amarok at Dakar 2010

Proving Grounds: The Amarok earned its stripes at this year's Dakar Rally in Argentina and Chile.

Few things are more American than a pickup truck, and there was a time when Ford and Chevrolet were the only names that mattered to serious truck buyers. What a difference globalization, international competition, U.S. government-sponsored bailouts and punitive tariffs make.

UK-based MotorTransport just named the International Truck of the Year and the winner is VW’s Amarok manufactured right here in Buenos Aires. The Amarok, which took home top honors at last week’s IAA Commercial Truck trade show in Germany, is an international success story.

Four years in the making between Argentina and Germany, built exclusively at the company’s General Pacheco Industrial Center and launched domestically in March, the Amarok is now sold on five continents including some of the most competitive truck markets in Europe, Australia and Africa. One notable exclusion: the United States, thanks in part to anti-diesel legislation and a 25% import tariff which PickupTrucks.com lovingly refers to as “the U.S. chicken tax.”

In developing the Amarok, VW invested over US$400 million and logged over 5 million miles of road tests in some of the world’s most extreme conditions including the 2010 Dakar Rally. Ironic then that the most demanding truck owners in the world can’t get behind the wheel, a fact that’s not sitting well with PickupTruck.com readers. “Thank you, U.S. government,” writes Garrett, while Owen bottom lines it for his truck-loving brethren, “They should bring that truck over to North America. Nuff said.”  (Full Story)

 

Bariloche

Mendoza

Uruguay

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