Gaucho Group Holdings, Inc VINO announced the formation of a new fintech mortgage lending division, Gaucho Open Asset Lending (“GOAL”).
As Gaucho Holdings’ new financing arm, GOAL will likely serve as the company’s self-financing option for buyers of its unique luxury vineyard real estate project, Algodon Wine Estates, with plans to expand beyond.
This strategic development allows Gaucho, which owns Algodon Wine Estates outright, to offer prospective buyers self-financed mortgages.
These options include 10, 15, and 20-year mortgage terms, providing greater accessibility to over 400 vineyard estate lots.
The company estimates that the potential revenue from the sale of these vineyard lots could be approximately $80 million—$100 million, excluding any future appreciation.
Even after selling all projected lots, Gaucho will retain over 2,500 acres for its operations and further development.
Furthermore, Gaucho aims to expand GOAL beyond its real estate projects, potentially disrupting the lending industry in Argentina by providing innovative fintech mortgage and lending solutions in a country where traditional financing options are mainly unavailable to the public.
GOAL anticipates launching an app soon to reach 46 million Argentines, focusing on highly urbanized cities such as Buenos Aires, Córdoba, Mendoza, and Rosario.
The company believes this is a timely and fitting product for Argentina, where it foresees a robust demand for lending services, particularly in urban areas with a growing need for housing and credit access.
“By providing tailored financing options, we aim to not only make luxury vineyard ownership more accessible but also diversify our income streams, supporting our vision for future growth,” commented Scott Mathis, CEO and Founder of Gaucho Group Holdings.
Price Action: VINO shares were trading higher by 1.98% at $5.15 premarket at the last check on Thursday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.