decent.

Interesting comment. Indeed there is acreage in Argentina at US$500.oo per acre.

My first question is a qualifier; you state:

“I have been looking at vineyards in the san rafael area of mendoza, and there are alot out there that are around US$3,000 to $5,000 per acre, developed (income producing), and around US$1000 bare.”

When you say ” I have been looking at vineyards in the San Rafael area …” do you mean you actually set foot in San Rafael, or was your searching done on the internet?

I cannot begin to fairly answer your statement without knowing how your research was conducted, i.e. by internet or by physically spending time in San Rafael.

Please advise and I will gladly reply to your statement.

Sincerely,

Tom Phelan
La Vida Buena Vineyards

I have prepared a three page reply to Mr. Horst and in particular the article he refers to.

If you would like a copy please email me at: Tomphelany@yahoo.com and I will gladly
email a copy to you.

Tom Phelan
La Vida Buena Vineyards

Thank you for your interest and questions.

On the surface and at first glance, your calculations are basically correct and I am reasonably familiar with competitor web sites and vineyards that are being offered as I do work with (on occasion as a broker) for these competitors.

Addressing your question about averaged grape yields, my Pro-Forma takes into account good years, bad years and average years. It does not include any disastrous years, e.g. 0% production, but this certainly could occur as in any farm project and as I recall also with stocks, bonds, mutual funds, real estate etc. I used to say if you want guarantees buy US T-Bills but …., well that’s another story

I bite my lip when I hear someone say my prices are high when similar projects are, perhaps 50% less or in your example, 66% less and the assumption is made by surfing the internet. I am not taking issue with you rather I feel the adage “All that glitters is not gold” applies to vineyards as well.

I have lived over here for over two years and have seen a zillion vineyards and I agree some that are larger are also cheaper but if one fairly compares two equal vineyards La Vida Buena is quite competitive. Also, as with any “Factional” the total cost is more than if you single handedly purchased that house or Condo or boat.

Projects similar to ours would be US$45,000 to US$60,000 per planted withj some perks we do not offer or cannot offer, e.g. clay tennis courts or amazing views of the Andes Mountains. None of these projects offer “Fractional Ownerships” and their entry levels range from US$250,000 and up with NO Casita or house included.

Our individual 5 Acre planted vineyard are US$129,950 with NETTING and the Fractional 10 acre Vineyard, excluding the Casita, is US$22,500 per planted acre and again with NETTING.

It is understandably hard to appreciate or understand the vast difference between vineyards sitting at a desk and looking at a PC until you stand on the property and look at the surroundings, e.g. we are surrounded by neighbors with hundreds of acres of Plum and Peach trees and a well established Chardonnay vineyard. Los Alamos Estancia was built in 1830 and is our neighbor and rents rooms for US$200 per night per person and is where dignitaries stay and well as major Political figures when visiting San Rafael.

Many vineyards border major, noisy highways, or perhaps next to a junkyard or heavy industrial complex.

Many vineyards are poorly kept and may require 25% – 75% of the purchase price in remedial measures.
Many vineyards have the wrong kind of grape, e.g. Pedro Ximénez that fetches 1/3 what a Malbec grape brings.

Many vineyards have no worker’s house which means when your worker leaves for the day, who is watching your vineyard?

Many vineyards have a shoddy worker’s house desperately in need of repairs.

Many vineyards have an antiquated tractor that is 30 years old and in desperate need of repairs.

La Vida Buena has a brand new worker’s house built in 2009 and a bran new John Deer tractor acquired in 2010.

La Vida Buena has a professional support staff; most vineyards do not, for example:

1. Full time, 24/7 on site worker who watched the vineyard and Casita
2. Off site workers
3. Vineyard Manager
4. Vineyard Agronomist
5. Argentine CPA who makes sure everything is handled correctly
6. Enologist

I could ramble on but hopefully people will understand that until you set foot here in Argentina it is fair to either yourself or La Vida Buena Vineyards to judge from a PC.

If you ever visit Mendoza Province I would love to show you our La Vida Buena Vineyard’s development and what our competitors offer.

Sincerely,

Tom Phelan
La Vida Buena Vineyards

http://www.google.com/hostednews/ap/article/ALeqM5iamPncWreRow3AWJcxizz_sgQEngD9I2KHD00

Allow me to introduce myself, my name is Thomas Phelan and my wife Yvonne and I own the La Vida Buena Vineyards, a 108 acre development in San Rafael, Mendoza Province, Argentina.

I invite you to contact me directly at: Tomphelany@yahoo.com

Sincerely,

Tom Phelan
La Vida Buena VIneyards

Allow me to introduce myself, my name is Thomas Phelan and my wife Yvonne and I own the La Vida Buena Vineyards, a 108 acre development in San Rafael, Mendoza Province, Argentina.

Although we have sold several boutique 5 acre vineyards in the marketing process we have received many requests regarding a Fractional Ownership VIneyard.

So we decided to pursue it further and offer just such an opportunity. We have added to the project a 2 bedroom 2 bath 1,000 sq. ft. Casita for two reasons; first San Rafael has an acute shortage of rental units thus because the Casita will be nestled in a beautiful vineyard setting is should produce great rental income which inures to the Fractional Owners. The 2nd reason is to be able offer on an availability basis, somewhere for the Fractional Owner to stay while visiting.

Even though this article broke on the Memorial Day weekend we have received ob]ver fifty inquiries and upon request, have emailed many Reservation Forms of which several have alt=ready come back completed. This is probably for two reasons, the quality of the project and its pricing and these people are familiar with Fractional Ownership projects.

If you have additional questions I invite you to personally me at: Tomphelany@yahoo.com

Sincerely,

Tom Phelan
La Vida Buena VIneyards

Thanks