Ola Uruguay Real Estate and Investments

I wasn’t really supposed to be there. It was the farewell party of Federico Alvarez, Uruguay’s hottest export since red meat, whose short film “Ataque del Panico” (you can watch it on youtube here), has given Hollywood what the LA Times punningly describes as a “Panic Attack.” After being featured on Kanye West’s blog, Alvarez shot into the international spotlight, practically overnight. In the course of a month, he went from successful Montevideo director to Hollywood starlet. He signed a $30-million movie deal—which includes a $1-million director’s fee—and literally became the talk of the town.

Last Friday Alvarez gathered his closest friends, and his production company, Murdoc, to thank them for their work on his video. The next day he was bound for Los Angeles to live out a fantasy usually only seen in, well, the movies

I met Alvarez a few nights prior at a public screening of his now famous video; I was fresh home from pilates when I recieved a call that Alvarez, his girlfriend, and a mutual friend were on their way to get me. Minutes later we were speeding to Montevideo’s principle plaza, where we watched its most famous building explode on the big screen thanks to Alvarez’s post-production skills. The thrill in the air was palpable, both at the screening and at the farewell party. Afterall, it is not everyday that a community bears witness to one of its own becoming a smashing international success. That said, while Fede Alvarez is clearly spearheading a media-frenzied debut for Uruguay, the country on a whole has been, for some time, witnessing an explosion of its audiovisual industry.

A month before “Ataque del Panico” hit the mainstream, Variety, the New-York based weekly entertainment trade magazine published the article, “Uruguay finds film mojo” citing government aid and local talent as crucial reasons for the recent jumpstart in Uruguayan cinema.

According to the article, “since last year, Uruguay’s government has budgeted $1 million toward a film fund meant to support pics in all phases of production, distribution, and promotion. A second fund of $750,000 finances audiovisual endeavors…” Along with budgetary support, the government also offers tax incentives, which include a VAT exemption for production services and co-productions (which most projects are). There is also a fledgling tax incentive for private investors in film. On average, movies are made in the $500,000 range, while budgets for commercial spots are around $45,000 a day. Permits are easily received and film crews are often seen around and outside of the capital.

The world is taking notice.

At this year’s Berlin Film Festival, Urguayan Adrian Biniez took home the shared jury grand prix for his debut feature “Gigante” (Giant). In October 2009, the Brooklyn Academy of Music programmed a selection of Uruguayan movies under the name Go Uruguay! The project was curated by Carlos Gutierrez, co-founding director of Cinema Tropical, who told Variety that “it struck [him] last year that Uruguayan cinema was not getting all the attention it merited.” Fede Alvarez will help to change that, as has Fernando Epstein of Control Z, a company that has produced the Urguayan hits “Whiskey” and “25 Watts.”

Along with film-makers, highly skilled directors are making commercials that air (and win awards) across the continent and beyond. On a recent trip to the U.S. I realized the shampoo commercial I was watching was actually filmed in Uruguay. At Cannes this year, Uruguay’s Oriental Films—a production house founded just two years ago, with only $35,000 in initial capital—took home four prizes for their work with Volkswagen and Stella Artois. In its first year, as reported by El Pais, Oriental Films did $3.5 million worth of business and opened a branch in Mexico, which has strengthened strategic alliances with its regional partners.

With its combination of talent, scenic shooting locations, and government support, Uruguay is becoming a global center for highly professional and low-cost production services. The production houses here offer some of the best of film, commercial, and post-production services. They also present an incredible opportunity for foreign investment. While some funds are available through domestic and international organizations, such as IBERMEDIA, many are specifically geared toward full-length fiction or documentary films. The creation of a fund available to the rapidly important cinematic and publicity production sector in Uruguay could be mutually beneficial for investors and creatives alike, including those, like Fede Alvarez, who make it big on the international stage and are looking to reinvest in local talent.