Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria Profile
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria (Cresud) operates as a Latin American agricultural company.
The company produces high quality goods, adding value to the Argentine agricultural production chain, with a growing presence in the region through investments in Brazil, Paraguay, and Bolivia.
The company's sector is one of the main engines of the productive, economic, and social development of the country. The company produces oilseed grains and cereals, sugar cane and meat for the world, seeking maximum efficiency in the management of natural resources and optimizing its assets.
Additionally, the company participates in the real estate business in Argentina through its subsidiary IRSA (ByMA:IRSA, NYSE:IRS), one of the leading real estate companies in Argentina, dedicated to the country, as well as selective investments outside Argentina.
Segments
The company operates through Agricultural Business, and Business Urban Properties and Investments segments.
Agricultural Business
Agricultural business is further consisting of four segments:
The Agricultural production segment consists of planting, harvesting and sale of crops as wheat, corn, soybeans, cotton and sunflowers; breeding, purchasing and/or fattening of free-range cattle for sale to slaughterhouses and local livestock auction markets; leasing of the company's farms to third parties; and planting, harvesting and sale of sugarcane.
The segment agricultural production aggregates the crops, cattle, sugarcane and agricultural rental and services activities:
The company's Crops activity consists of planting, harvesting and sale of crops as wheat, corn, soybeans, cotton, and sunflowers. The company focuses on the long-term performance of the land and seeks to maximize the use of the land through crop rotation, the use of technology and techniques.
The company's Cattle activity consists of breeding, purchasing and/or fattening of free-range cattle for sale to meat processors and local livestock auction markets.
The company's Sugarcane activity consists of planting, harvesting and sale of sugarcane.
The company's Agricultural rentals and Services activity consists of agricultural services (for example: irrigation) and leasing of its farms to third parties.
The company's Land transformation and Sales segment comprises gains from the disposal and development of farmlands activities.
The company's Other segments includes, principally, feedlot farming, slaughtering and processing in the meat refrigeration plant, among others. The segment Other segments aggregate the activities Agro-industrial and Others.
Urban Properties and Investment Business
The company operates its business in Argentina through five segments, namely Shopping Malls, Offices, Sales and Developments, Hotels and Others.
The company's Shopping Malls segment includes the operating results from its portfolio of shopping malls principally comprising of lease and service revenue from tenants.
The company's Offices segment includes the operating results from lease revenues of offices, other rental spaces and other service revenues related to the office activities.
The company's Sales and Developments segment includes the operating results of the development, maintenance and sales of undeveloped parcels of land and/or trading properties. Real estate sales results are also included.
The company's Hotels segment includes the operating results of its hotels mainly consists of room, catering and restaurant revenues.
The company's Others primarily includes the entertainment activity through La Arena S.A., La Rural S.A. and Buenos Aires Convention Center (Concession), We Are Appa, investments in associates such as GCDI and the financial activities carried out through BHSA / BACS, as well as other investments in associates for both years.
Agricultural Business
As of June 30, 2023, the company owned 27 farms with approximately 616,803 hectares distributed in Argentina, Brazil, Bolivia and Paraguay.
During the June 30, 2023, the company used 101,681 hectares of the land it owns for crop production, approximately 66,006 hectares are for cattle production, 85,000 hectares are for sheep production and approximately 28,064 hectares are leased to third parties for crop and cattle production.
The remaining 347,480 hectares of land reserves are primarily natural woodlands. In addition, the company has the rights to hold approximately 132,000 hectares of land under concession for a 35-year period that can be extended for another 29 years. Out of this total, the company has assigned 22,314 hectares for crop production and 2,604 hectares for cattle production. Also, during the fiscal year ended on June 30, 2023, the company leased 99,183 hectares to third parties for crop production and 13,821 hectares for cattle production.
Principal Business Activities
During the fiscal year ended June 30, 2023, the company conducted its operations on 27 owned farms and 100 leased farms.
Agricultural Business
Land Transformation and Sales
Land Acquisitions
In September 2022, Brasilagro Companhia Brasileira de Propiedades Agrícolas (BrasilAgro) acquired the Panamby farm located in the municipality of Querência in the state of Mato Grosso, Brazil. The property has a total area of 10,844 hectares, of which 5,400 are productive. On June 30, 2023, the company acquired the farm Los Sauces, with 1,250 hectares which 1,200 are productive agricultural hectares, located in the department of Conhello, in the province of La Pampa.
Land Sales
Occasionally the company sells properties that have reached a considerable valuation to reinvest in new fields with greater potential.
On November 8, 2022, BrasilAgro completed the sale of a fraction of 863 hectares (498 productive hectares) of the Morotí farm located in the State of Boquerón, Paraguay. After this transaction, a remainder of 58,722 hectares of this field remains in possesion of BrasilAgro.
On November 17, 2022, BrasilAgro sold a fraction of 1,965 hectares (1,423 productive hectares) of the Rio do Meio farm located in Correntina, state of Bahia, Brazil, which was acquired in January 2020. After this transaction, the remaining of 5,750 hectares of the establishment remains in portfolio of the company.
In March 2023, Brasilagro signed two contracts for the sale of the remaining surface of 5,517 hectares (4,011 arable hectares) of its Araucaria farm, located in the municipality of Mineiros, state of Goiás, Brazil. The first transaction was carried out on March 28, 2023, selling 5,185 hectares (3,796 arable hectares) at a value of 790 soybeans bags per arable hectare. The second transaction was carried out on March 29, 2023, in which 332 hectares (215 arable hectares) were sold for a value of 297 soybeans bags per arable hectare.
In addition, on June 29, 2023, BrasilAgro completed the sale of 4,408 hectares (3,202 arable hectares) of the Jatobá VII farm, located in the municipality of Jaborandi - Bahia.
Land Productivity Potential
As of June 30, 2023, the company owned land reserves in the region extending over more than 347,499 hectares of its own farmlands. In addition, the company has a concession of 107,082 hectares reserved for future development.
During June 30, 2023, the company added to its portfolio 7,062 productive hectares in the region: 1,452 hectares in Argentina, 2,784 hectares in Paraguay though BrasilAgro and 2,826 hectares in Brazil though BrasilAgro.
Crops and Sugarcane
The company's crop production is mainly based on crops and oilseeds and sugarcane. The company's main crops include soybean, wheat, corn, and sunflower. Other crops, such as sorghum and peanut, are sown occasionally and represent only a small percentage of total sown land.
The company's leased land for crops is mostly located in the Pampas region, a favorable area for crop production.
Agro-Uranga S.A.
As of June 30, 2023, the company's holding in Agro-Uranga S.A. (Agro-Uranga) was 34.86%. This company optimizes production processes with special emphasis in soil conservation, the application of rational techniques and care of the environment.
Lease of Farmlands
The company conducts its business on owned and leased land. During the fiscal year 2023, the company leased to third parties a total of 100 fields, covering 123,300 hectares, including 59,092 hectares in Brazil through BrasilAgro. Out of the total leased area 99,183 hectares were assigned to agricultural production, including double crops, and 13,821 hectares to cattle raising.
Cattle
The company's cattle production involves the breeding and fattening of its own animals. The company also purchases and fattens cattle which it sells to slaughterhouses and supermarkets. As of June 2023, the company's cattle aggregated 75,992 heads, and it had a total surface area of 82,431 hectares of own and leased lands devoted to this business activity. In addition, the company has leased to third parties 70 hectares assigned to these activities.
During the fiscal year ended June 30, 2023, the company's production was 9,743 tons, an 11.4% year-on-year increase.
The company's cattle breeding activities are carried out with breeding cows and bulls and its fattening activities apply to steer, heifers and calves. The company uses veterinarian products manufactured by leading national and international laboratories.
The company's cattle stock is organized into breeding and fattening activities. The company complies with national animal health standards that include laboratory analyses and vaccination aimed at controlling and preventing disease in its herd, particularly FMD.
Leases and Agricultural Services
The company leases own farms to third parties for agriculture, cattle breeding and seed production, mainly in two types of farms. On the one hand, the company leases its farms under irrigation in the Province of San Luis (Santa Bárbara and La Gramilla) to seed producers or enter into production agreements whereby it renders production services to seed companies.
In addition, in this segment the company includes the irrigation service it provides to its own farms leased to third parties.
Others
The company includes within Others the results coming from its investment in FyO.
Futuros y Opciones.Com S.A. (FyO)
FyO is an Argentine company, leader in the agricultural business that provides high-quality services, whose mission is to provide specialized agricultural products to feed the world in a responsible and sustainable way, generating opportunities and growth, integrating production services, process, logistics and marketing of special products from the farm to the final consumer. Working with top-level experts and suppliers, ensuring traceability and quality throughout the commercial chain, adding value to the agricultural production chain.
FyO owns 96.37% of Amauta Agro S.A. (AMAUTA), whose objective is to carry out activities of production, export and import, and national and international purchase and sale of raw materials and agricultural products, focused on soil nutrition. AMAUTA owns 100% of Amauta Agro SPA, from Amautagro S.A. and Amauta Agro S.A. These companies are located in Chile, Uruguay and Paraguay, respectively. The purpose of the three companies is the commercialization of consumer products.
FyO also owns a 96.37% stake in Fyo Acopio S.A. whose objective is the wholesale consignment of cereals and oilseeds, as well as the storage and conditioning service in the collection plant and the sale of agricultural inputs.
Agrofy S.A.U. (Agrofy)
During 2023, Agrofy has changed its approach to the market strategy, focusing on growth with profitability of the categories and clients defined as main.
Farmland Portfolio
As of June 30, 2023, the company owned, together with its subsidiaries, 27 farms, with a total surface area of 616,803 hectares.
Additional Information About Farmlands
Argentina
El Recreo
El Recreo farm is located 970 kilometers northwest of Buenos Aires, in the Province of Catamarca. It has semi-arid climate and annual rainfall. This farm is maintained as a productive reserve.
Los Pozos
Los Pozos farm located 1,600 kilometers northwest of Buenos Aires, in the Province of Salta. This property is located in a semi-arid area with average annual rainfall of 500 mm. The area is naturally suited to cattle raising and forestry activities (poles and fence posts), and it has agricultural potential for summer crops such as soybean, sorghum and corn, among others. For the year ended June 30, 2023, the company used 18,399 hectares in agricultural production. As of June 30, 2023, there were 37,519 heads of cattle in this farm.
On October 5, 2023, the company sold a fraction of 4,262 hectares fraction of land reserve with productive potential of Los Pozos farm, keeping the ownership of approximately 235,300 hectares of the property.
San Nicolás
San Nicolás is a 4,005 hectares farm owned by Agro-Uranga S.A., and is located in the Province of Santa Fe, approximately 45 kilometers from the Port of Rosario. As of June 30, 2023, 4,519 hectares were planted for agricultural production, including double crops, and 100 hectares were used for cattle. The farm has two plants of silos with a storage capacity of 14,950 tons.
Las Playas
Las Playas farm has a surface area of 4,294 hectares and is owned by Agro-Uranga S.A. It is located in the Province of Córdoba, and it is used for agricultural purposes. As of June 30, 2023, the farm had a sown surface area, including double crops, of 6,577 hectares for crop production.
La Gramilla and Santa Bárbara
These farms have a surface area of 7,072 hectares and it is located in Valle de Conlara, in the Province of San Luis. Unlike other areas in the province of San Luis, this valley has a high-quality underground aquifer which makes these farms well suited for agricultural production after investments were made in the development of lands, wells and irrigation equipment. In the course of the 2022/2023 crop season, a total of 5,973 hectares were sown, including double crops. Also, the company has leased to third parties 8 hectares, and the rest hectares were destined to land reserves.
La Suiza
La Suiza farm has, at the end of the fiscal year, a surface area of 26,371 hectares and is located in Villa Ángela, Province of Chaco. It is used for agriculture and raising cattle. As of June 30, 2023, La Suiza had a stock of approximately 7,581 heads of cattle. During the 2022/2023 season, the compan used 700 hectares for agricultural production and 18,100 for livestock production.
El Tigre
El Tigre farm was acquired on April 30, 2003 and has a surface area of 8,360 hectares. It is located in Trenel, Province of La Pampa. As of June 30, 2023, 8,512 hectares were assigned to crop production, including double crops.
San Pedro
San Pedro farm has a surface area of 3,582 hectares (1,255 of which are used for breeding livestock) and is located in Concepción del Uruguay, province of Entre Ríos, which is 305 kilometers north of Buenos Aires. In the course of the 2022/2023 crop season, 2,584 hectares were used for agricultural production, including double crops.
8 de Julio and Estancia Carmen
8 de Julio farm has a surface area of 90,000 hectares. It is in the Department of Deseado in the province of Santa Cruz. Estancia Carmen has a surface area of 10,911 hectares. It is in the province of Santa Cruz, next to the company's 8 de Julio farm.
Cactus
The feedlot has a surface area of 171 hectares. It is located in Villa Mercedes, Province of San Luis. Given its degree of urban development and closeness to the city, the company decided to discontinue fattening activities in this facility.
Finca Mendoza
On March 2, 2011, the company purchased, jointly with Zander Express S.A., a rural property composed of thirteen plots of land located in the District of Perdriel, Luján de Cuyo Department, in the province of Mendoza. As a result of this acquisition, Cresud has become owner of a 40% undivided estate in all and each of the properties, while Zander Express S.A. holds the remaining 60%.
On April 17, 2019, the company has purchased to Zander Express S.A. the 60% of the property. As a result of this acquisition, the company has become owner of a 100% of the property.
Los Sauces
On June 30, 2023, the company acquired a 1,250-hectare farm, of which 1,200 are productive, located in the department of Conhello, in the province of La Pampa.
Establecimiento Mendoza
The farm is located on the north of the city of Mendoza, in the department of Lavalle.
Agropecuaria Anta (concession)
The Agropecuaria Anta farm is located in the department of Anta, in the west of the province of Salta. It is located 46 km from Las Lajitas and 87 km from Joaquín V. Gonzalez, both tows of the province of Salta. It corresponds to a permit to use public land for 35 years with expiration in 2035, extendable to 29 more years.
Brazil (through subsidiary BrasilAgro)
Jatobá
Jatobá is a farm in the northeastern region of Brazil, with a total surface area of 8,868 hectares. The company considers that this farm is in a very advantageous location for the movement of crops, as it is close to the Candeias Port, in the state of Bahia. During the 2022/2023 season, 7,006 hectares were used for agriculture.
In May 2022, the company sold 1,654 hectares of its Jatobá farm, 1,250 of which are arable, equivalent to 300 soybean bags per arable hectare.
In June 2023, the company sold an area of 4,408 hectares (3,202 arable hectares) in the Jatobá farm, located in the municipality of Jaborandi, in the state of Bahia.
Alto Taquarí
Alto Taquarí is located in the municipal district of Alto Taquarí, state of Mato Grosso. The company sells all the plateau areas of Alto Taquarí Farm, leaving 1,380 hectares (809 arable hectares) in the portfolio.
Chaparral
Chaparral is a 37,182-hectare farm, with 24,306 hectares dedicated to agriculture production. It is located in the municipal district of Correntina, state of Bahia.
Nova Buriti
Located in the municipal district of Januária, state of Minas Gerais, Nova Buriti has a surface area of 24,212 hectares. It is located in the southeastern region of Brazil and it is close to the large iron industries. The company is in the process of obtaining the necessary permits in order to begin operations.
Preferencia
Preferência is located in the municipal district of Barreiras, in the state of Bahia. It has a total surface area of 17,799, with 12,410 hectares of arable area.
Sao Jose
Located in São Raimundo das Mangabeiras, in the state of Maranhão. With a total area of 17,566 hectares, with 10,137 hectares of arable area.
Arrojadinho
Located in Jaborandi, in the state of Bahia. With a total area of 16,642 hectares, of which 11,063 hectares of arable area. The Arrojadinho farm is suitable for grain production and cattle raising.
Rio do Meio
Located in Correntina, in the state of Bahia. With a total area of 5,750 hectares, of which 4,219 are used for agricultural activities.
On November 8, 2022, BrasilAgro sold a fraction of 1,965 hectares (1,423 usable hectares). After the sale, Rio do Meio Farm remained on the company's portfolio, with a total area of 5,750 hectares.
Serra Grande
Located in Baixa Grande do Ribeiro, in the state of Piauí. With a total area of 4,489 hectares, of which 2,904 are agricultural hectares. It was acquired in May 2020. This farmland started being transformed from forest to agriculture in 2020 and this development was completed in 2021.
Panamby
In September 2022, the company acquired the Panamby farm, located in the municipality of Querência, in the State of Mato Grosso. The Panamby farm has an area of 10,844 hectares, 5,379 hectares of which are arable to be developed, and suitable for the cultivation of grains and cotton.
Paraguay (through BrasilAgro)
Marangatú / Udra
The company owns, through BrasilAgro, the Marangatú/UDRA farms, located in Mariscal Jose Felix Estigarribia, Department of Boquerón, Paraguayan Chaco, Republic of Paraguay, totaling 58,722 hectares, with 33,555 hectares of arable area.
Bolivia (through BrasilAgro)
In February 2021, the company sold 100% of the shares of its indirectly controlled subsidiaries, Agropecuaria Acres del Sud S.A. (Acres del Sud), Ombu Agropecuaria S.A, Yatay Agropecuaria S.A., and Yuchan Agropecuaria S.A. owners of approximately 9,900 agricultural hectares in the core zone from Bolivia to BrasilAgro for the approximate sum of USD 30 million.
Las Londras
On January 22, 2009, the bill of purchase for the Las Londras farm was cast into public deed; it has a surface area of 4,555 hectares and is located in the province of Guarayos, Republic of Bolivia. During the 2022/2023 crop season, it was used for agricultural production.
San Rafael
This farm is located in the Province of Guarayos, Republic of Bolivia, and has a surface area of 3,109 hectares, which were used for agricultural production during the 2022/2023 crop season.
La Primavera
On June 7, 2011, the company acquired the La Primavera farm, with a surface area of approximately 2,356 hectares. During the 2022/2023 season, this farm was used for agricultural production.
Land Management
In contrast to traditional Argentine farms, run by families, the company centralizes policy making in an Executive Committee that meets on a weekly basis in Buenos Aires.
Principal Markets
Crops
The company's crop production is mostly sold in the domestic market.
Cattle
The company's cattle production is sold in the local market. The main buyers are slaughterhouses and supermarkets.
Customers
For the fiscal year 2023, the company's sales from the agribusiness segment (excluding sales of farms) were made to approximately 30 customers. Sales to the company's ten largest customers represented approximately 55% to 60% of its net sales. Some of these customers included Cargill, FASA, Bunge Alimentos S.A., ACA, GLENCORE, QUILMES, COFCO and GROBOCOPATEL.
Marketing Channels and Sales Methods
Crops
The company normally works with grains brokers and other intermediaries to trade in the exchanges. The company sells part of its production in advance through futures contracts and buy and sell options to hedge against a drop in prices.
The company stores crops in silo bags. On the other hand, in Brazil the company has a total storage capacity of approximately 52,000 tons.
Cattle
The company has several marketing channels. The company sells directly to local meat processors and supermarkets, as well as in markets and auctions. The company's customers include Frigorífico Swift, Arre Beef S.A., Colombo y Magliano S.A. and Saenz Valiente Bulrich at prices based on the cattle market.
Inputs
The company buys in bulk and store seeds, agrochemicals and fertilizers to benefit from discounts offered during off-season sales.
Seasonality
As is the case with any company in the agro-industrial sector, the company's business activities are inherently seasonal. With respect to the company's international market, in Bolivia climate conditions allow a double season of soybean, corn and sorghum production and, accordingly, these crops are harvested in April and October, while wheat and sunflower are harvested during August and September, respectively. Other segments of the company's activities, such as its sales of cattle and its forestry activities tend to be more of a successive character than of a seasonal character.
Urban Properties and Investments Business (through subsidiary IRSA)
As of June 30, 2023, the company's investment in IRSA's common shares amounts to 56.93%.
Shopping Malls
As of June 30, 2023, IRSA owned a majority interest in, and operated a portfolio of, 15 shopping malls in Argentina, six of which are located in the city of Buenos Aires (Abasto, Alcorta Shopping, Alto Palermo Shopping, Patio Bullrich, Dot Baires Shopping and Distrito Arcos), two of which are located in the greater Buenos Aires area (Alto Avellaneda and Soleil Premium Outlet), and the rest of which are located in different provinces of Argentina (Alto Noa in the City of Salta, Alto Rosario in the city of Rosario, Mendoza Plaza in the City of Mendoza, Córdoba Shopping Villa Cabrera and Patio Olmos (operated by a third party) in the city of Córdoba, La Ribera Shopping in Santa Fe (through a joint venture) and Alto Comahue in the city of Neuquen).
IRSA portfolio's leasable area totaled 335,826 sqm of GLA (excluding certain spaces occupied by hypermarkets, which are not IRSA's tenants).
Seasonality
IRSA Inversiones y Representaciones S.A. (IRSA) business is directly affected by seasonality, influencing the level of the company's tenants' sales. During Argentine summer holidays (January and February) its tenants' sales typically reach their lowest level, whereas during winter holidays (July) and in Christmas (December) they reach their maximum level. Clothing retailers generally change their collections in spring and autumn, positively affecting the company's shopping malls' sales. Discount sales at the end of each season are also one of the main seasonal factors affecting the company's business.
Offices
Management of office buildings
IRSA generally act as the manager of the office properties. IRSA typically owns the entire building or a substantial number of floors in the building. The buildings in which IRSA owns floors are generally managed pursuant to the terms of a condominium agreement that typically provides for control by a simple majority of the interests based on owned area. As building manager, IRSA handles services, such as security, maintenance and housekeeping, which are generally outsourced.
Intercontinental Plaza, city of Buenos Aires
Intercontinental Plaza is a modern 24-story building located next to the Intercontinental Hotel in the historic neighborhood of Monserrat in downtown city of Buenos Aires. IRSA owns a 13.2% interest in the building which has footage averaging 22,535 square meters of gross leasable area; meaning IRSA owns 2,979 square meters of gross leasable area in this building. The principal tenant is Total Austral, and as an added value Banco Supervielle (Bank Branch) and Starbucks Coffee providing different services to the building.
Dot Building, city of Buenos Aires
IRSA's subsidiary Panamerican Mall S.A. developed an office building of 11,242 square meters of gross leasable area next to Dot Baires Shopping. This building was inaugurated in 2010, which meant IRSA's arrival at the growing corridor of the Northern Area with respect to offices for rent. The building's principal tenants include Farmanet, Astrazeneca S.A., Carrier and HP, among others.
Zetta Building
IRSA's subsidiary Panamerican Mall S.A. built an office building of 32,173 square meters of gross leasable area and 11 floors located in the commercial complex Polo Dot in Buenos Aires City. As of June 30, 2023, the building was occupied approximately 91% by Mercado Libre. On the ground floor, it is operating the first Workplace office space with 815 sqm sectors. The space offers private offices, fully equipped, furnished and fully operational, ready to use.
261 Della Paolera Building
261 Della Paolera is a 126-meters high triangular-shaped tower of AAA offices and 55,000 square meters of surface, plus 70 linear meters of Curtain Wall on the Río de la Plata, developed on the last vacant land plot of Catalinas Norte. Located in the most prestigious corporate area in Argentina, with approximately 35,000 square meters of gross leasable area (GLA), 318 parking spaces, changing rooms, security, gastronomy services, 261 Della Paolera has become an icon of the city, built sustainability in mind and high quality design. The rental process has been a success, achieving 100% occupancy with premium tenants. It is a highly valued asset for large corporations for the acquisition of floors, due to its characteristics and current contracts.
Suipacha 652/64, city of Buenos Aires
Suipacha 652/64 is a 7-story office building located in the office district of the City of Buenos Aires. As of June 30, 2023, the company owned the entire building and 62 parking spaces. The building has unusually large floors, most measuring 1,580 square meters. The average footage of the building is 11,465 square meters of gross leasable area.
Phillips Building, city of Buenos Aires
The historic Philips Building adjoins Dot Baires shopping mall, and faces Avenida General Paz, in the city of Buenos Aires. It has 4 office floors, a total GLA of approximately 8,017 sqm, and a remaining construction capacity of approximately 20,000 sqm. During the year 2023, a Workplace will be start rented in the building, and it is expected that it will be the place where the largest headquarters of Workplace Irsa will operate with 1,800 sqm.
Leases
IRSA lease their offices by using contracts with an average term between three to ten years for corporate offices. In addition, IRSA has two spaces named "Workplace by IRSA", which are leased as a co-working place, that are fully equipped and all inclusive by using services contracts with semi-annually and annually average term.
Hotels
Hotel activity reached high levels of occupancy and sales during the fiscal year ended June 30, 2023, motivated by the boom both in domestic and international tourism. The exclusive Llao Llao resort, which the company owns in the city of Bariloche, in southern Argentina, reached optimal occupancy levels and is a great attraction for the high-income segment. Also, the company's Libertador and Intercontinental hotels in the city of Buenos Aires recovered strongly this year.
During the fiscal year 2023, IRSA kept its 76.34% interest in Intercontinental hotel, 100% interest in Libertador hotel and 50.00% interest in Llao Llao.
Hotel Intercontinental, city of Buenos Aires
IRSA owns 76.34% of the Hotel Intercontinental. The Hotel Intercontinental is located in the downtown city of Buenos Aires neighborhood of Montserrat, near the Intercontinental Plaza office building. Intercontinental Hotels Corporation, a United States corporation, currently owns 23.66% of the Hotel Intercontinental. The hotel's meeting facilities include eight meeting rooms, a convention center and a divisible 588 sqm ballroom. Other amenities include a restaurant, a business center, a sauna and a fitness facility with swimming pool. The hotel has 313 rooms.
Hotel Libertador, City of Buenos Aires
IRSA acquired 100% of the Sheraton Libertador Hotel. IRSA reacquired 20% of the shares of Hoteles Argentinos S.A.U. (HASAU), reaching 100% of the capital stock of HASAU and beginning to operate the hotel directly under the name Libertador. The hotel is in downtown Buenos Aires.
Hotel Llao Llao, San Carlos de Bariloche, Province of Rio Negro
The hotel is a member of The Leading Hotels of the World, Ltd., a prestigious luxury hospitality organization representing 430 of the world's finest hotels, resorts, and spas.
Bariloche Plot, El Rancho, San Carlos de Bariloche, Province of Río Negro
IRSA's hotel operator subsidiary, Llao Llao Resorts S.A., IRSA owns a land covering 129,533 sqm of surface area in the city of San Carlos de Bariloche in the Province of Río Negro. The land is on the border of the Lago Gutierrez, close to the Llao Llao Hotel in an outstanding natural environment and it has a large cottage covering 1,000 sqm of surface area designed by the architect Ezequiel Bustillo.
Sale and Development of Properties and Land Reserves
Residential Development Properties
The acquisition and development of residential apartment complexes and residential communities for sale is one of the company's core activities. IRSA developments of residential apartment complexes consist of the new construction of high-rise towers or the conversion and renovation of existing structures, such as factories or warehouses. In connection with its developments of residential communities, IRSA frequently acquire vacant land, develop infrastructure, such as roads, utilities, and common areas, and sell plots of land for construction of single-family homes. IRSA may also develop or sell portions of land for others to develop complementary facilities, such as shopping areas within residential developments.
Construction and renovation works on IRSA's residential development properties are performed, under its supervision, by independent Argentine construction companies that are selected through a bidding process.
Residential Properties (available for sale)
In the residential market, the company acquires undeveloped properties strategically located in densely populated areas of the city of Buenos Aires, particularly properties located near shopping malls and hypermarkets or those to be constructed. The company then develop multi-building high-rise complexes targeting the middle- and high- income market.
Intangibles - Units to be Received Under Barter Agreements
Córdoba Shopping Adjoining Plots - Residential
On August 18, 2022, the plot 1 of 3,240 sqm was bartered with Proaco, where two residential towers is expected to be built. IRSA expect to receive as consideration, within a period of between 36 and 44 months, functional units that represent 16% of the square meters, with a minimum of 2,160 square meters, together with garage units and, if built, also storage units.
Trusts: Ancón (Luis M. Campos 100 and Ancón), Figueroa Alcorta 6464 and Libertador 7400 (Quantum Bellini)
On February 9, 2021, as a result of the reorganization of Manibil S.A., IRSA received a participation in three trusts:
Ancón Trust: The original project, which consisted in an office building, was changed to a residential building, of which 1,014 sqm and 10 garages units would correspond to the company.
Figueroa Alcorta 6464 Trust: corresponds to 1,786 sqm of apartments and 11 garage units. As of June 30, 2023, the work has started; and
Libertador 7400 (Quantum Bellini) Trust: corresponds to 923 sqm of apartments, 5 garages units and storage units. As of June 30, 2023, units have been sold, with the remaining of 186 sqm in stock.
Coto Abasto air space - Towers 1 & 2 - city of Buenos Aires
IRSA owns an airspace to construct approximately 23,000 square meters above the premises of the Coto hypermarket that is close to Abasto Shopping in the heart of the City of Buenos Aires. On September 24, 1997, IRSA and Coto Centro Integral de Comercialización S.A. (Coto) granted a deed through which the company acquired the rights to receive functional parking units and the rights to raise the property located between Agüero, Lavalle, Guardia Vieja and Gallo streets, in the Abasto neighborhood.
On October 25, 2019, IRSA transferred to a non-related third party the rights to develop a residential building (Tower 1) on Coto Supermarket airspace located in the Abasto neighborhood in the city of Buenos Aires. Tower 1 will have 22 floors of 1 to 3 rooms apartments, totaling an area of 8,400 sqm.
As of June 30, 2022, the construction work of Tower 1 had been completed by more than 60% of the total project. In addition, on June 30, 2023, in compliance with the agreement into with Abasto Twins S.A. in June 2016, the company signed the assignment of a parking unit and the right to build the Tower 2 of Abasto for USD 3 million.
Zetol S.A. and Vista al Muelle S.A. - Plot 2 Carrasco Boating - District of Canelones - Uruguay
On November 23, 2022, the barter of Plot 2 was completed with a surface of 17,754 sqm of the Carrasco Boating project to Carrasco Boating Trust.
Mixed Uses
Luján Plot of Land - Luján, province of Buenos Aires
This 115-hectare plot of land is located in the 62 Km of the West Highway, in the intersection with Route 5 and was originally purchased by Cresud from Birafriends S.A. for USD 3 million. In May 2012, IRSA acquired the property through a purchase and sale agreement entered into between related parties, thus becoming the current owner.
San Martin Plot (Ex Nobleza Piccardo Plant) - San Martín, province of Buenos Aires
This plot of land is owned by Quality Invest. On May 31, 2011, Quality Invest S.A. and Nobleza Piccardo S.A.I.C. y F. (Nobleza) executed the title deed for the purchase of a plot of land extending over 159,996 square meters located in the District of San Martín, Province of Buenos Aires, intended for industrial purposes and suitable in terms of characteristics and scales for mixed-use developments.
The Master Plan, by which it is projected to develop a large-scale integral urbanization (residential, commercial, etc.), which includes the construction of approximately 480,000 sqm, was endorsed by the Municipality of San Martin through Decree 1589/19 and registered before the General Directorate of Urbanism and Directorate of Urban Planning of the Municipality.
As a subsequent event of the fiscal year 2023, on August 31, 2023, IRSA has sold and transferred 100% of its stake in Quality Invest S.A. equivalent to 50% of the stock capital.
La Adela - Buenos Aires
IRSA owns the La Adela land reserve with an area of approximately 987 hectares, located in the District of Luján, Province of Buenos Aires, that was previously owned by Cresud. Given its degree of development and closeness to the city of Buenos Aires, IRSA intend to develop a new real estate project.
Puerto Retiro - city of Buenos Aires
Puerto Retiro S.A. has an 8.2 hectare plot of land, which is affected by a zoning regulation defined as U.P. which prevents the property from being used for any purposes other than strictly port activities.
Ezpeleta Plot - Quilmes, Buenos Aires
Acquired in April 2022 as part of the payment for the sale of the Republica Building. The property is made up of four plots and has a frontage of 851 meters on the Bs As - La Plata Highway, on the side of the urbanized area the property has a frontage of 695 meters on Río Gualeguay Street between Tupungato and La Guarda streets. It has a total area of 465,642 sqm, with a usable area of 242,151 sqm and a buildable area of 521,399 sqm.
Costa Urbana - city of Buenos Aires
The Plot of approximately 70 hectares, owned by the company, previously known as Solares de Santa María, is in the riverfront of the Río de la Plata, in the South Coast of the Autonomous city of Buenos Aires, southeast of Puerto Madero.
IRSA will have a construction capacity of approximately 866,806 sqm, which will drive growth for the coming years through the development of mixed-use projects.
IRSA promised to give to the city of Buenos Aires 50.8 hectares designated for public use, which represent approximately 71% of the total area of the property and contribute with three additional lots of the property, two for the Sustainable Urban Development Fund and one for the Innovation Trust, Science and Technology of the Government of the Autonomous City of Buenos Aires.
In March 2023, measurement was approved with a proposal for subdivision, division, transfer of streets and public space and the company is in the process of deeding the 3 parcels and the sector of the Public Park that is transferred for consideration.
La Plata Plot of Land
On March 22, 2018, IRSA acquired 100% of a plot of land of 78,614 sqm of surface in the town of La Plata, province of Buenos Aires. The transaction was consummated through the purchase of 100% of the shares of Entertainment Center La Plata S.A. that owns 61.85% of the property and the direct purchase of the remaining 38.15% from unrelated third parties.
As of June 30, 2023, the mixed-use project is advanced.
Polo Dot mix uses expansion - city of Buenos Aires
On the plot where the Zetta Building is located, IRSA has a surplus buildable surface of 15,940 sqm, where alternatives are being analyzed to develop a mixed-use project.
Caballito Ferro Plots 2, 3 and 4 - city of Buenos Aires
Caballito is a property of approximately 20,462 sqm in the city of Buenos Aires, neighborhood of Caballito, one of the most densely populated of the city. This plot will be used for the development of residential with retail and public spaces, with more than 85,000 sqm. This Project is approved by the GCBA authorities.
On December 23, 2019, IRSA transferred Parcel 1 of the land reserve located at Av. Avellaneda and Olegario Andrade 367 in the Caballito neighborhood of the city of Buenos Aires to an unrelated third party.
As of June 30, 2023, the development is awaiting the resolution of an appeal filed with the Government of the city of Buenos Aires.
Residential
Caballito Block 35 - city of Buenos Aires
On June 29, 2011, IRSA and GCDI, a residential developer, entered into an agreement to barter for the development of a plot of land located at Mendez de Andes street in the neighborhood of Caballito in the city of Buenos Aires.
As of June 30, 2023, the work for the concrete structure of Tower 3 was completed.
Zetol S.A. and Vista al Muelle S.A. - District of Canelones - Uruguay
In the course of fiscal year 2009 IRSA acquired a 100% ownership interest in Liveck S.A., a company organized under the laws of Uruguay. In June 2009, Liveck had acquired a 90% stake in the capital stock of Vista al Muelle S.A. and Zetol S.A., for USD 7.8 million. The remaining 10% ownership interest in both companies is in the hands of Banzey S.A. These companies have undeveloped lands in Canelones, Uruguay, close to the capital city of Uruguay, Montevideo.
IRSA to develop in these 13 plots, with a construction capacity of 182,000 sqm, an urban project that consists of the development and commercialization of 1,860 apartments.
As of June 30, 2023, 4 of the 6 units were received for the consideration of Tower 1 were sold, built on plot 2, and the infrastructure work concerning sectors A and B of the property has been completed.
Neuquen Residential Plot- Neuquen, Province of Neuquen
Through Shopping Neuquen S.A., IRSA owns a plot of 13,000 square meters with an estimated construction capacity of 57,000 square meters of residential properties in an area with significant growth potential. This area is located close to the shopping mall Alto Comahue and the hypermarket in operation.
Retail
Coronel Diaz and Beruti Building - city of Buenos Aires
In February 2022, IRSA purchased by means of public auction from the GCBA, a property located at the corner of the intersections of Beruti Street and Coronel Díaz Avenue. Such property is located in front of Alto Palermo Shopping, a shopping center owned by IRSA, located in the neighborhood of Palermo, one of the main commercial corridors of the city of Buenos Aires.
The property has an area of approximately 2,387 sqm, consisting of a first floor, six upper levels and a basement area.
Offices
Polo Dot offices 2 and 3 - City of Buenos Aires
These two parcels of 6,400 square meters with a construction capacity of 38,400 square meters each, are located adjoining to where the extension of Dot Baires Shopping is planned.
Paseo Colón 245 Building and Paseo Colón 275 Parking spaces - city of Buenos Aires
On December 28, 2022, IRSA was allotted by two Public Auctions carried out by the GCBA, for a property located at Paseo Colón 245 and 12 parking spaces at Paseo Colón 275. The property, with mixed-use potential, has 13 office floors in a covered area of approximately 13,690 sqm and a basement with parking spaces.
On May 29, 2023, the deed was signed and simultaneously was signed a bailment agreement contract with the GCBA, that will hold the property free of charge for a period of 18 months, in accordance with the conditions agreed upon in the auction.
Intercontinental Plaza II Plot - city of Buenos Aires
In the heart of the neighborhood of Monserrat, just a few meters from the most trafficked avenue in the city and the financial center, is the Intercontinental Plaza complex consisting of an office tower and the exclusive Intercontinental Hotel. In the current plot of 6,135 square meters a second office tower of 19,597 square meters and 25 stories could be built to supplement the tower located in the intersection of Moreno and Tacuarí streets.
Córdoba Shopping Adjoining Plots - Residential
On the parking lot of the Córdoba Shopping mall, IRSA has a land on which the company can build an office tower of up to 4,823 sqm, in accordance with Ordinance 12,860 of the Municipality of Córdoba.
Other Land Reserves
Conil - Avellaneda, Province of Buenos Aire
These plots of land the company owns, through IRSA, face the Alto Avellaneda shopping mall, totaling 2,398 square meters distributed in two opposite corners.
Other Land Reserves - Pilar, Pontevedra, San Luis Plot and Llao Llao Plot.
This group totals around 3.3 million square meters.
Others
La Rural (convention centers and fairs activities) and La Arena (Directv Arena concession)
In relation to the investment in La Rural S.A., its main activity includes the organization of congresses, fairs, exhibitions and events and is carried out by LRSA, both at the Palermo Fairgrounds and at the Centro de Exposiciones y Convenciones de la Ciudad Autónoma de Buenos Aires through a Transitory Union of Companies that obtained, by public tender, the concession of this property for a period of 15 years and the Punta del Este Convention and Exhibition Center. IRSA has an indirect participation of 35%.
Ogden Argentina S.A., indirectly controlled by IRSA by 70%, owns an 82.85% stake in La Arena S.A., a company that developed and operates the stadium previously known as DirecTV Arena, located in the kilometer 35.5 of the Pilar branch, Tortuguitas, in the province of Buenos Aires.
GCDI S.A. (real estate)
GCDI is a construction company listed on the ByMA which is mainly engaged in the construction of third-party projects and residential development projects in Argentina and Uruguay. As of June 30, 2023, IRSA held a 27.82% interest in GCDI.
We are appa S.A.
We are appa is incorporated with the social purpose of design, programming and development of software, mobile and web applications. We are appa reached 98.67%.
Through its application, ¡appa!, We are appa provides shopping malls and tenants a 100% digital customer loyalty system that promotes benefits and discounts by facilitating the consumer experience.
During the year, users of ¡appa! carried out more than 700,000 transactions on the platform, including consumption in shopping malls, use of parking spaces, and redemption of corporate benefits. Of these, approximately 636,000 visitor transactions were identified in IRSA shopping malls, corresponding to consumption of more than ARS 3,100 million by 204,000 users.
Avenida Inc.
As of June 30, 2023, IRSA indirectly owned 4.1% of Avenida Inc., a company dedicated to the e-commerce business.
Compara en casa
Compara en casa is a digital insurance broker that compares the policies of the main insurers in one place. They operate in Argentina, Brazil, Mexico, Paraguay and Uruguay.
As of June 30, 2023, IRSA indirectly owned 14.87% of Comparaencasa S.A.
Turismo City
IRSA owns indirectly 9,22% of Rundel Global Ltd., commercially known as Turismo City, which is a company that holds interest in different business related with tourism and travel assistance in Argentina, Brazil and Chile.
Banco Hipotecario S.A. (Banco Hipotecario)
As of June 30, 2023, IRSA held a 29.91% of the equity of Banco Hipotecario. Banco Hipotecario provided mortgage-related insurance and mortgage loan services. All its operations are located in Argentina where it operates a nationwide network of 62 branches in the 23 Argentine provinces and the city of Buenos Aires.
Banco Hipotecario is an inclusive commercial bank that provides universal banking services, offering a wide variety of banking products and activities, including a wide range of individual and corporate loans, deposits, credit and debit cards and related financial services to individuals, small-and medium-sized companies, and large corporations. Banco Hipotecario's business strategy is to continue diversifying its loan portfolio.
Also, Banco Hipotecario has diversified its funding sources by developing its presence in the local and international capital markets, as well as increasing its deposit base. As of June 30, 2023, its capital markets debt representing 3.2% of its total funding.
Banco Hipotecario's subsidiaries include BACS Banco de Credito y Securitización S.A. (BACS), a bank specialized in investment banking, asset securitization and asset management, from which Banco Hipotecario owns directly 62.3% and IRSA owns directly 37.7%; BHN Vida S.A., a life insurance company; and BHN Seguros Generales S.A., a property insurance company.
History
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria was founded in 1936. The company was incorporated under the laws of Argentina in 1936.
