Gaucho Group Holdings Inc. (NASDAQ: VINO) stock gained by 25.8% at last close whereas the VINO stock price declines sharply during the after-hours trading session by 4.3%. Gaucho Group Holdings has been sourcing and developing opportunities in Argentina’s inexpensive luxury real estate and consumer industry for more than ten years. With the aim of becoming a leader in varied luxury goods and services in sought-after lifestyle industries and retail landscapes, the company has been successful in placing itself to take advantage of global e-sustained commerce’s and rapid growth across several market sectors.
VINO stock’ Update
On Sep 14, 2021, Gaucho Group Holdings confirmed that its shareholders had authorized the purchase of additional land holdings in Argentina for $2.4 million in an all-stock transaction. An objective third-party evaluation of the real estate was used to calculate the purchase price.
The properties, which are located in Argentina, were purchased from Hollywood Burger Holdings which is a related but separate firm. One of the property lots is located in in San Rafael, Mendoza, Argentina, while the other is in Córdoba, Argentina, with an average total market price of $2.4 million. However, both properties are present on main thoroughfares with a lot of foot and street traffic, and both have plenty of parking, which is a great and unique characteristic in Argentine towns.
Scott Mathis, CEO & Chairman of Gaucho Holdings stated
This transaction is just one of several significant and accretive acquisitions that may be made. One of the properties presently produces positive cash flow through lease revenues and will be advantageous to the company, while the other is expected to have significant development potential. They consider both are in good development zones, and that the real estate valuations were momentarily lowered due to the Covid problem, allowing for significant appreciation in the years ahead.