Case Studies
Real Estate
The Trend
Tourist interest in Turkey’s Mediterranean beach locales increased six fold between 2001 and 2003 and has continued growing at exponential rates since. The tourism industry catered to, and focused on, beach resorts and hotel-based vacations in the large resort towns of Antalya, Izmir, and Side. According to Euromonitor, 85% of beach tourists in Turkey vacationed for 14 days or longer between March and October
and spent an average of €5000 ($6700) per stay.
Leading the Trend
With anticipated growth in the tourism sector of Turkey, ArgentaGroup foresaw the overgrowth and downturn of the larger resort towns leading to inflated prices, intolerable crowds, and overbooked accommodations. At the same time, Turkey would expand its economic base by offering exclusive incentives for foreign investment. ArgentaGroup saw an opportunity to develop rental condominiums partnered with premiere hotels in each location providing the ultimate combination of privacy and flexibility with the convenience and amenities of a luxury hotel. With the help of several strategic partners in Turkey and its vast resources and expertise in Europe, ArgentaGroup began working with businesses, residents, and local leaders in the Mediterranean town of Kusadasi.
The Opportunity
Development of beach-front condominium accommodations with hotel-style amenities in the smaller, yet highly cultured, historic, and awe-inspiring, luxury beach destination – Kusadasi. ArgentaGroup partnered with AKB Developments to build Water Villas Kusadasi - a high-end, beach-front condo community consisting of 6 phases and 96 units. In cooperation with Elite Hotels Group, ArgentaGroup would market the condominiums worldwide.
ArgentaGroup opened private equity shares to select investors to fund the US$5.2 million project. Funds were raised in less than 60 days and construction began on the 18-month project.
The Success
After successfully marketing the property, Water Villas Kusadasi was sold out for the 2005-2006 season. Following the first year of operation, HSBC Holdings Group purchased the property, realizing an unprecedented 97% return for ArgentaGroup investors.
Private Equity
The Scoop
In late 2005, ArgentaGroup was approached by the owners of the Vinotek Wine Bars & Lounges (now BIN22), a conceptual design in modern, upscale wine bars in multiple venues across Europe. The owners wanted ArgentaGroup to execute a buyout of the company and raise capital for the launch of 6 Vinotek Bars. While the deal wasn’t quite ripe, ArgentaGroup continued to work with the talented entrepreneurs through mentorship and consultation and was able to raise the seed capital required for a proper startup and model through third party equity investors.
Uncorked
Shortly after the very successful launch of the first Vinotek location in Stockholm, the management team decided to start a capital campaign to raise funds required for additional locations throughout Europe. ArgentaGroup’s investment provided Vinotek the working capital to expand to 6 additional locations. In July 2006, with a solid performance record – exceeding investors’ expectations by 40% - Vinotek was sold to the Tabas Group.
That’s Where We Keep Going
With such a finely designed and managed opportunity – and by popular demand among investors and wine enthusiasts alike– ArgentaGroup continued the Vinotek concept with a twist. By adding culinary, cultural, linguistic, and historical insights to the exotic and rare wines served - ArgentaGroup launched BIN22 – the wine experience. BIN22 is a current ArgentaGroup opportunity consistently returning over 30% to investors – and delivering the world’s finest wines. BIN22. Experience. Wine.
“Conformity is the jailer of freedom and the enemy of growth.”
- John F. Kennedy
