Gaucho Group plans to list two Argentine retail properties for sale

Gaucho Group Holdings unveiled its intention to list two of its Argentine retail properties, situated in San Rafael and Cordoba, for sale. Priced at USD 2,000,000 and 700,000 respectively, this strategic move is among several initiatives slated for the upcoming months, all designed to amplify stockholder value. These properties constitute a minor segment of the Company’s asset portfolio and are operationally distinct from its other ventures. The divestment of these real estate assets will enable the Company to concentrate on its primary ventures, notably Algodon Wine Estates. The Company projects this flagship business to generate revenues approaching USD 80 Million in the forthcoming years. Additionally, if the Company manages to sell these non-core properties at their listed price range of USD 2 to 2.4 Million, these proceeds would be directed towards reducing debt. These efforts form part of a broader initiative to divest non-core assets. For example, the Company owns another property asset, the prospective sale of which could yield between USD 8 to 10 Million in cash. These proceeds would be directed towards reducing outstanding debt and possibly issuing dividends to stockholders. Based on the number of shares outstanding, this could equate to USD 8 to 10 in cash per share. Importantly, this asset stands apart from the Company’s primary ventures, including its expansive 4,138-acre development and its e-commerce luxury leather and accessories enterprise. Successful execution of these combined efforts could potentially result in cash inflows exceeding USD 10 to 12 Million. Gaucho Holdings has unveiled sales forecasts exceeding $6 Million for 2023. While the revenue recognition from the real estate project’s deeding will occur in 2025, the primary revenue catalyst is anticipated to be the vineyard estate lots at Algodon Wine Estates, located in San Rafael, Mendoza, Argentina. Algodon Wine Estates has successfully sold approximately 10% of its total lots, leaving over 450 lots available for purchase. The Company projects that these lots could generate an additional revenue of USD 80 to 100 Million in the coming years. This projection does not account for any interest income derived from the Company’s self-financing options offered to buyers.