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Algodon Wines Luxury Development Group Completes Strategic Land Acquisition

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By: Algodon Wines & Luxury Development Group, Inc. via Marketwired News Releases

August 24, 2017 at 08:31 AM EDT

Algodon Wines & Luxury Development Group Completes Strategic Land Acquisition

Algodon Wines Luxury Development Group Completes Strategic Land Acquisition

Purchase of More Than 2,000 Acres Doubles the Size of Algodon Wine Estates & Expands Long-Term Revenue Opportunity

Algodon Wines Luxury Development Group Completes Strategic Land Acquisition

NEW YORK, NY--(Marketwired - August 24, 2017) - Algodon Wines & Luxury Development Group, Inc. (OTCQB: VINO), a real estate development brand with luxury lifestyle assets and premium wines in Argentina, has completed the strategic acquisition of additional land directly adjacent to the existing Algodon property. The new parcel measures 845 hectares or 2,088 acres, more than doubling the size of Algodon Wine Estates.

This new land, which is on the Southwest end of the existing estate, brings Algodon Wine Estates to a total of 4,138 acres, providing room for continued expansion and growth. Algodon is considering various use cases for the new land, including the development of Private Estancias, Vineyard Villas and additional estate lots. An expansion of vineyard operations and the development of supplementary agricultural revenue streams are also being considered.

"As part of our previously announced growth strategy, our team in Argentina has been exploring under-valued assets that we can monetize in conjunction with the rising economy in Argentina," said Scott Mathis, Founder, Chairman and CEO. "Today's acquisition announcement is the first of many initiatives we are implementing that will expand our real estate holdings and drive future revenue growth opportunities for Algodon."

"The new land encompasses a massive 6.5 square miles and lies adjacent to our existing Algodon Wine estates property. We believe the new fertile property gives us the flexibility and space needed to expand the scope of our operations, enabling us to capitalize on the rebounding Argentinian real estate market. In fact, in the most recent quarter the city of San Rafael in the Mendoza Province lifted the prohibition on the digging of water wells, which we believe may have a significant positive impact on our parcel's value. We look forward to providing further updates to our shareholders on the development of this new land," concluded Mathis.

Algodon Wine Estates is a 4,138 acre (1675 ha) world-class wine, wellness, culinary and sport resort, and luxury real estate development, located in the rolling hills of the Sierra Pintada Mountains in San Rafael, Mendoza, Argentina. This wine and golf community is a global destination that includes approximately 400 lots ranging from .5 to 7 acres, with 109 lots from Phase 1 of the master plan currently available for private sale and development. Surrounded by the natural beauty of vineyards, fruit orchards and olive groves, many lots have pre-existing vines and groves, and a significant number of available Phase 1 lots are situated directly on the estate's 18-hole golf course, offering golf, vineyard and mountain views. The luxury destination is truly unique in the world, where residents can step right outside their front door onto the golf course and find themselves among meticulously manicured vines planted in the 1940s.

Recent momentum with the economic turnaround in Argentina was evidenced during the Argentina Business & Investment Forum held in September 2016 by President Mauricio Macri and the Argentina Investment and Trade Promotion Agency. The forum highlighted investment opportunities, attracted foreign direct investment and marked Argentina's historical return to international markets. Foreign direct investment pledges post the investment forum have totaled more than $32.5 billion with Siemens & GE committing to over $15 billion in combined infrastructure projects.

In the wake of Argentina's recent economic reforms, the Buenos Aires Herald reports that the city's real estate market has experienced its strongest monthly growth in sales since the inauguration of President Mauricio Macri. Real estate transactions in August were up 43.9% for the same month last year, and up 18.4% from July. Experts believe that a key factor in a successfully booming real estate cycle may be linked to the increased use of mortgages, which is on the rise in Argentina. According to a February 2017 report from Morgan Stanley here, Argentina seems poised for a turnaround, one that offers investors long-term opportunity and returns.

The Argentine real estate market is traditionally notable for its all cash transactions, and Algodon Wine Estates is one of the few real estate developments in the country that provides financing for the sale of its lots pursuant to Argentine law. This is reflected in the latest data from the College of Notaries of the City of Buenos Aires, which reported that in April, 4032 deeds were executed with an average value of US$ 144,535, growing 20.5% compared to the same month of 2016; So far this year 14,985 deeds were already signed, with an increase of 45.5% compared to 2016.

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