IRSA Inversiones y Representaciones Sociedad Anónima Stock

IRSA Inversiones y Representaciones Sociedad Anónima (IRSA) operates as a real estate company.

The company engages, directly and indirectly through subsidiaries and joint ventures, in a range of diversified activities, primarily in real estate, including the acquisition, development and operation of shopping malls; the acquisition and development of office buildings and other non-shopping mall properties primarily for rental purposes; the development and sale of residential properties; the acquisition and operation of luxury hotels; the acquisition of land reserves for future development or sale, and selective investments outside Argentina.

Segments

The company operates through five segments, Shopping Malls; Offices; Hotels; Sales and Developments; and Others.

Shopping Malls segment

This segment engages in the acquisition, development and management of shopping malls. The company has expanded its real estate activities in the shopping mall segment, through the acquisition and development of shopping malls.

This segment includes the operating results from its portfolio of shopping malls principally comprising lease and service revenue from tenants.

As of June 30, 2023, the company operated and owned a majority interest in a portfolio of, 15 shopping malls in Argentina, six of which are located in the city of Buenos Aires (Abasto Shopping, 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). As of June 30, 2023, the company's portfolio's leasable area totaled 335,826 sqm of gross leasable area (GLA) (excluding certain spaces occupied by hypermarkets, which are not its tenants).

Alto Palermo, City of Buenos Aires

Alto Palermo is a 141-store shopping mall that opened in 1990 in Palermo, a well-known middle class and densely populated neighborhood in the city of Buenos Aires. Alto Palermo is located at the intersection of Santa Fe and Coronel Díaz avenues. Alto Palermo has a total constructed area of 69,457 square meters (including parking) that consists of 20,629 square meters of gross leasable area spread out over six levels and has a 642-car pay parking space of approximately 30,000 square meters. Alto Palermo's targeted clientele consists of middle-income individuals between the ages of 28 and 45. The shopping center was reconverted in 2021, after a 5,000 sqm expansion work, the renovation of most of its premises, and the entry of a differential gastronomy with proposals, such as Il Quotidiano, Mooi and Base. As of June 30, 2023, Alto Palermo's occupancy rate was 100.0%.

Abasto Shopping, City of Buenos Aires

Abasto is a 157-store shopping mall located in downtown Buenos Aires with direct access from the Carlos Gardel subway station, six blocks from the Once railway terminal and near the highway to Ezeiza International Airport. The company converted the property into a 114,312 sqm shopping mall (including parking and common areas) with 37,167 square meters of gross leasable area (40,500 square meters if the company considers Museo de los Niños).

Abasto has a 29-restaurant food court, a 12-screen movie theatre complex with seating capacity of approximately 3,000 people, covering a surface area of 8,021 sqm, entertainment area and Museo de los Niños with a surface area of 3,732 sqm (the latter is not included within the gross leasable area). The shopping mall is distributed over five stories and includes a parking space for 1,180 vehicles with a surface area of approximately 39,690 sqm. As of June 30, 2023, Abasto Shopping's occupancy rate was 99.5%.

Alto Avellaneda, Greater Buenos Aires Area

Alto Avellaneda is a 122-store suburban shopping mall that opened in October 1995 and is located in the city of Avellaneda, which is on the southern border of the city of Buenos Aires. This shopping mall is next to a railway terminal and is close to downtown Buenos Aires. Alto Avellaneda has a total constructed area of 108,598.8 square meters (including parking) which consists of 39,457 square meters of GLA. The shopping mall has a multiplex cinema with eight screens, including the largest XD room in the country, a complex of sports fields (soccer, basketball and paddle), an entertainment center (Sacoa) and another one under construction (Neverland Sports & Play), and a food court with 14 restaurants. In addition, the property has the Chango Más hypermarket and branches of Easy, Norauto and Coppel (not included in the gross leasable area), but it pays for its pro rata share of the common expenses of Alto Avellaneda's parking space. The shopping mall has 2,400-car free parking spaces consisting of 53,203 square meters. As of June 30, 2023, Alto Avellaneda's occupancy rate was 92.5%.

Alcorta Shopping, City of Buenos Aires

Alcorta Shopping is a 107-store shopping mall, located in the residential area of Palermo Chico, one of the most exclusive areas in the city of Buenos Aires, and a short drive from downtown Buenos Aires. Alcorta Shopping has a total constructed area of approximately 87,553.8 square meters (including parking) that consists of 15,839 square meters of GLA. Alcorta Shopping has a cinema with two screens, a food court with eleven restaurants, two exclusive restaurants, a Carrefour hypermarket on the ground floor and a Santander bank. The shopping mall is spread out over three levels and has a free for two hours parking spaces for 1,137 cars and an additional parking space in front of the main building with space for 435 vehicles. As of June 30, 2023, Alcorta Shopping's occupancy rate was 96.1%.

Patio Bullrich, City of Buenos Aires

Patio Bullrich is the oldest shopping mall of the city of Buenos Aires and it is located in the neighborhood of Recoleta, one of the most prosperous areas of the city of Buenos Aires. This district is a residential, cultural and tourist center that includes distinguished private homes, historical sites, museums, theatres and embassies. The shopping mall has 90 stores and is located within walking distance of the most prestigious hotels of the city of Buenos Aires and the subway, bus and train systems.

Patio Bullrich has a total constructed area of 28,984 square meters (including parking) that consist of 11,396 square meters of GLA and common areas covering 12,472 square meters. The shopping mall is spread out over four levels and has paid parking spaces for 206 cars in an area consisting of approximately 4,600 square meters. The shopping mall has a four-screen multiplex cinema with 1,381 seats and soon a fifth luxury screen will be incorporated. In addition, it has the first Food Hall in Argentina that offers French and Italian gastronomy, patisserie, seafood and grill cuisine, and a 'gourmet' market with specially selected premium brand products. From the point of view of its tenant mix, it concentrates the most important international and national luxury brands, such as LV, Salvatore Ferragamo, Hugo Boss, Bally, Omega, Etiqueta Negra, Jazmin Chebar, Calandra, among others. As of June 30, 2023, Patio Bullrich's occupancy rate was 92.7%.

Dot Baires Shopping, City of Buenos Aires

Dot Baires Shopping is a shopping mall and it has 4 floors and 3 underground levels, a covered surface area of 173,000 square meters, of which 47,811 sqm constitute Gross Leasable Area, comprising 163 retail stores, a 10-screen multiplex cinema and parking space for 2,100 vehicles in a surface of approximately 75,000 square meters.

Dot Baires Shopping is located in the neighborhood of Saavedra, city of Buenos Aires. As of June 30, 2023, the company's equity interest in Panamerican Mall S.A. was 80%. As of June 30, 2023, Dot Baires Shopping's occupancy rate was 98.6%.

Soleil Premium Outlet, greater Buenos Aires, province of Buenos Aires

Soleil Premium Outlet is located in San Isidro, Province of Buenos Aires. It has a surface area of 47,525 square meters, 15,673 square meters of which are GLA, with a strong presence in the sports and leisure sector. It comprises 74 stores and 2,599 parking spaces. In addition, it has 6-screen multiplex cinemas, a supermarket and a food court. As of June 30, 2023, Soleil Premium Outlet's occupancy rate was 100.0%.

Distrito Arcos, City of Buenos Aires

Distrito Arcos is a premium outlet located in the neighborhood of Palermo, city of Buenos Aires. It has 14,458 square meters of GLA and it consists of 63 stores, 427 parking spaces and 33 outdoor selling stands. In an open urban space, Arcos was consolidated in all its business units with sustained year-on-year growth. As of June 30, 2023, Distrito Arcos' occupancy rate was 100%.

Alto NOA, City of Salta, Province of Salta

Alto Noa is an 84-store shopping mall that opened in 1994. Alto Noa is located in the city of Salta, the capital of the Province of Salta, in the northwest region of Argentina. The province of Salta has a population of approximately 1.3 million inhabitants with approximately 0.8 million inhabitants in the city of Salta. The shopping mall has a total constructed area of approximately 31,046 square meters (including parking) which consists of 19,427 square meters of GLA. Alto Noa has a food court with 12 restaurants, a large entertainment center, a supermarket and a multiplex cinema with eight screens. The shopping mall occupies one floor and has free parking spaces for 520 cars. Alto Noa's targeted clientele consists of middle-income individuals between the ages of 28 and 40. As of June 30, 2023, Alto Noa's occupancy rate was 100.0%.

Alto Rosario, City of Rosario, Province of Santa Fe

Alto Rosario is a 131-store shopping mall located in the city of Rosario, Province of Santa Fe, the third largest city in Argentina in terms of population. It has a total constructed area of approximately 100,750 square meters which consists of 34,859 square meters of gross leasable area. Alto Rosario has a food court with 20 restaurants, a large entertainment center, a supermarket, and a Showcase cinema with 14 state-of-the-art screens. The shopping mall occupies one floor and has free parking spaces that can accommodate 1,700 cars. Alto Rosario's targeted clientele consists of middle-income individuals between the ages of 28 and 40. As of June 30, 2023, Alto Rosario's occupancy rate was 93.8%.

Mendoza Plaza, City of Mendoza, Province of Mendoza

Mendoza Plaza is a 124-store shopping mall which has 22 selling stands and is located in the district of Guaymallen, in the Province of Mendoza. Mendoza Plaza Shopping consists of 41,511 square meters of GLA and has a multiplex cinema covering an area of approximately 3,659 square meters with ten screens, one of them a 4D being the first in the province, a food court with 10 restaurants, 5 restaurants on the street in the new sector called 'Shopping District Food', an entertainment center and a supermarket, which is also a tenant. The shopping mall has two levels and has free parking spaces for 1,817 cars, 358 of which are underground. Mendoza Plaza's targeted clientele consists of middle-income individuals between the ages of 28 and 40. As of June 30, 2023, Mendoza Plaza's occupancy rate was 99.1%.

Córdoba Shopping-Villa Cabrera, City of Córdoba

Córdoba Shopping Villa Cabrera is a shopping mall covering 35,000 square meters of surface area, with 15,368 square meters being gross leasable area. Córdoba Shopping has 98 commercial stores, a 12-screen multiplex cinema and parking spaces for 1,500 vehicles, located in Villa Cabrera, city of Córdoba, Province of Córdoba, the second largest city in Argentina in terms of population. As of June 30, 2023, Córdoba Shopping's occupancy rate was 97.7%.

La Ribera Shopping, City of Santa Fe, Province of Santa Fe

The company holds 50% of Nuevo Puerto Santa Fe S.A.'s shares, a corporation that is tenant of a building in which it built and operates 'La Ribera' shopping mall, which has a surface area of 47,506 square meters, comprising 67 retail stores and seven 2D, 3D and XD-screen multiplex cinema with the latest sound and image technology. It also comprises a 510-square meter cultural center and 24,553 square meters in outdoor areas and free parking space. Its gross leasable area is 10,531 square meters. The shopping mall is strategically located in Dock I of the port of the city of Santa Fe in the Province of Santa Fe. As of June 30, 2023, La Ribera Shopping's occupancy rate was 96.8%.

Alto Comahue, City of Neuquen, Province of Neuquen

Alto Comahue, was inaugurated on March 17, 2015, and is located in the city of Neuquen, in the Patagonian region of Argentina. It has a total surface of 35,000 square meters and 11,700 square meters of GLA, approximately 1,066 roof-covered and open-air parking spaces and a large entertainment and leisure area. Alto Comahue offers 88 retail stores that house the most prestigious brands in Argentina and has a 6-screen multiplex cinema and a theme restaurant. It is a three-story building consisting of a basement where the parking space and a 1,000 square meters Food Hall are located; the ground floor consisting of 5,000 square meters for retail stores, and the first floor consisting of 1,000 square meters for restaurants with unique views of the city, 2,600 square meters of retail stores and 2,100 square meters of cinemas. As of June 30, 2023, Alto Comahue's occupancy rate was 96.7%.

Seasonality

The company's business is directly affected by seasonality, influencing the level of its tenants' sales. During Argentine summer holidays (January and February) the company's 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.

Competition

The company's principal competitor is Cencosud S.A.

Offices segment

The company owns, develops and manages office buildings throughout Argentina. As of June 30, 2023, the company owned a participation in six office buildings of rental office property totaling 74,392 square meters of gross leasable area. As subsequent events, on August 9, 2023, the company sold one floor of the tower '261 Della Paolera' for a total leasable area of approximately 1,184 sqm and 10 parking lots located in the same building, and on July 24, 2023, the company sold the entire building Suipacha 652/664. Also, on October 5, 2023, the company sold and transferred two floors of the tower '261 Della Paolera' for a total leasable area of approximately 2,395 sqm and 18 parking lots located in the building. This segment includes the operating results from lease revenue of offices.

Intercontinental Plaza

Intercontinental Plaza is a modern 24-story building located next to the Intercontinental Hotel in the historic neighborhood of Monserrat in downtown Buenos Aires. The company owns a 13.2% interest in the building which has footage averaging 22,535 square meters of gross leasable area; meaning it 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

The company's subsidiary Panamerican Mall S.A. developed an office building of 11,242 square meters of gross leasable area next to Dot Baires Shopping. The building's principal tenants include Farmanet, Astrazeneca S.A., Carrier and HP, among others.

Zetta Building

The company'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 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 contracts.

During the fiscal year 2023 and as a subsequent event, the company sold and transferred 11 floors of this building. After these operations, IRSA maintains the ownership of 4 floors of this building with an approximate gross leasable area of 4,937 sqm, parking spaces and other complementary spaces.

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. On July 24, 2023, the entire building was sold.

Phillips Building, City of Buenos Aires

The Philips Building adjoins its 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

The company usually leases its offices by using contracts with an average term between three to ten years for corporate offices. In addition, the company has two spaces named 'Workplace by IRSA', which it leases as a co-working place, that are fully equipped and all inclusive by using services contracts with semi-annually and annually average term.

Competition

The company competes with other relevant market players, such as RAGHSA, who together with IRSA represent the 2 most important players.

Hotels segment

This segment includes the operating results of its hotels mainly consisted of room, catering and restaurant revenue.

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, increasing rates and occupancy. During the fiscal year 2023, the company 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

The company 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 Paza office building. Intercontinental Hotels Corporation, a United States corporation, 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 a swimming pool. The hotel was completed in December 1994 and has 313 rooms.

Hotel Libertador, City of Buenos Aires

In March 1998, the company acquired 100% of the Sheraton Libertador Hotel from Citicorp Equity Investment. In March 1999, the company sold a 20% interest in the Sheraton Libertador Hotel to Hoteles Sheraton de Argentina.

Hotel Llao Llao, San Carlos de Bariloche, Province of Rio Negro

In June 1997 the company acquired the Hotel Llao Llao from Llao Llao Holding S.A. Fifty percent is owned by the Sutton Group. The Hotel Llao Llao is located on the Llao Llao peninsula, 25 kilometers from the City of San Carlos de Bariloche, and it is one of the most important tourist hotels in Argentina. The hotel has a total constructed surface area of 15,000 sqm and 158 original rooms. The hotel-resort also includes an 18-hole golf course, tennis courts, fitness facility, spa, game room and swimming pool. 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. The Hotel Llao Llao was managed by IRSA- Galerías Pacífico S.A. - UT, a Transitory Union constituted 50% by IRSA and 50% by Grupo Sutton until March 31, 2023, from that date it is operated by Llao Llao Resorts S.A.

Bariloche Plot, El Rancho, San Carlos de Bariloche, Province of Río Negro (land reserve)

On December 14, 2006, through the company's hotel operator subsidiary, Llao Llao Resorts S.A., it acquired 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.

Sales and Developments segment

This segment includes the results generated by other rental properties, the development, maintenance and sales of undeveloped parcels of land and/or trading properties. Real estate sales results are also included.

The company owns an important 70-hectare property facing the Río de la Plata in the south of Puerto Madero. The company will have a construction capacity of approximately 866,806 sqm, which is expected to drive growth for the coming years through the development of mixed-use projects. IRSA will destinate 50.8 hectares for public use, which represents approximately 71% of the total area of the property and will 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 city of Buenos Aires.

Additionally, the company has a project called Polo Dot, through its subsidiary Panamerican Mall S.A., located in the commercial complex adjoining to Dot Baires Shopping Mall. In the first phase, the company developed the Zetta building which was inaugurated in May 2019. The second stage of the project consists of two office buildings that will add 38,400 sqm of GLA to the complex. The company has noticed an important demand for premium office spaces in this new commercial center and it is confident that it will be able to generate a quality enterprise similar to the ones that the company has done in the past with attractive income levels and high occupancy. Additionally, on the plot where the Zetta Building is located, the company has a surplus buildable surface of 15,940 sqm, where alternatives are being analyzed to develop a mixed-use project.

In February 2022, the company acquired from the Government of the Autonomous City of Buenos Aires by public auction 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 the company, 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. Furthermore, it has a total covered area of approximately 8,136.85 sqm with future expansion potential.

In April 2022, as part of the payment for the sale of the Republica Building, the company acquired a property, which 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.

In December 2022, the company acquired from the Government of the Autonomous City of Buenos Aires by public auction a property located at Paseo Colón 245 and 12 parking spaces located at Paseo Colón 275, which is close to 'Casa Rosada', the Argentine government headquarters. The property, with mixed-use potential, has 13 stories in a covered area of approximately 13,700 sqm and a basement with parking lots.

Residential Development Properties

The acquisition and development of residential apartment complexes and residential communities for sale is one of the company's core activities. The company's development of residential apartment complexes consists of the new construction of high-rise towers or the conversion and renovation of existing structures, such as factories or warehouses. In connection with the company's development of residential communities, it frequently acquires vacant land, develop infrastructure, such as roads, utilities, and common areas, and sell plots of land for construction of single-family homes. The company 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 the company's residential development properties are performed, under its supervision, by independent Argentine construction companies that are selected through a bidding process. The company enters into turnkey contracts with the selected company for the construction of residential development properties pursuant to which the selected company agrees to build and deliver the development for a fixed price and at a fixed date.

Another modality for the development of residential undertakings is the exchange of land for constructed square meters. In this way, the company delivers undeveloped pieces of land and another firm is in charge of building the project. In this case, the company receives finished square meters for commercialization, without taking part in the construction works.

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 develops multi-building high-rise complexes targeting the middle- and high- income market. These are equipped with modern comforts and services, such as open 'green areas', swimming pools, sports and recreation facilities and 24-hour security.

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 are expected to be built. The company expects 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., the company 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. As of June 30, 2023, there is a legal protection in relation to this project (amparo), thus the work is suspended;

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 had been sold, with the remaining of 186 sqm in stock.

Coto Abasto Air Space - Towers 1 & 2 - City of Buenos Aires

The company 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, the company 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.

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, which is not related to the company.

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. The company's intention is to carry out a mixed-use project, taking advantage of the environment consolidation and the strategic location of the plot.

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. Likewise, the subdivision plan in accordance with the urban indicators was presented to the Directorate of Cadastre of the Province of Buenos Aires.

Additionally, during the fiscal year 2022, Quality Invest S.A. and the Municipality of San Martín signed the following documents:

Peretz Club Agreement Closing Minutes: The company paid the certificates owed for the work in question already completed, releasing both parties from any claim regarding the documents signed on January 20, 2015.

Complementary Agreement with the Municipality of San Martin: The ending of the Rodriguez Peña work and the relocation and start-up of the Edenor (Empresa Distribuidora y Comercializadora Norte S.A.) substation are agreed, in accordance with the plan and specifications drawn up by the company and that are part of the annexes of the same.

As a subsequent event of the fiscal year 2023, on August 31, 2023, IRSA had sold and transferred 100% of its stake in Quality Invest S.A. equivalent to 50% of the stock capital.

La Adela - Buenos Aires

The company owns the 'La Adela' land reserve with an area of approximately 987 hectares, located in the District of Luján, Province of Buenos Aires. Given its degree of development and closeness to the city of Buenos Aires, the company intends 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

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 - Costanera Sur, City of Buenos Aires

On December 21, 2021, the law from Buenos Aires City congress approving a New Zoning Regulations for the development of the property, was passed, and published. The Plot of approximately 70 hectares, owned by the company, 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. The published law grants a New Zoning Area, designated: 'U73 - Public Park and Costa Urbana Urbanization', which enables a mixed-use development, combining, residential, office buildings, retail, services, public spaces, education, and entertainment.

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, the company owns 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.

Residential

Caballito Block 35 - City of Buenos Aires

On June 29, 2011, the company and GCDI S.A. (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. In April 2018 GCDI and the company terminated the barter agreement and it recovered the land. In July 2018, the Supreme Court of Justice issued a favorable final decision allowing the construction of 57,192 sqm of apartments on the plot.

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

The company owns 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.. 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.

The company intends 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. Such a project has the urban feasibility status for the construction of approximately 180,000 sqm for a term of 10 years, which was granted by the Mayor's Office of the Canelones department and by its Local Legislature. Zetol S.A. and Vista al Muelle S.A. agreed to carry out the infrastructure works, as well as a minimum amount of square meters of properties. The satisfaction of this commitment under the terms and conditions agreed upon will grant an additional 10-year effective term to the urban feasibility status.

As of June 30, 2023, 4 of the 6 units 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. Likewise, the barter of Plot 2 was signed with the same developer of Plot 1 and the works started at the end of 2022.

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, the company purchased by means of public auction from the GCBA (Government of the Autonomous City of Buenos Aires (Gobierno de la Ciudad Autónoma de Buenos Aires)), 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 the company, 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. Furthermore, it has a total covered area of approximately 8,137 sqm with future expansion potential.

As of June 30, 2023, the transfer deed of ownership was signed. Simultaneously with the deed, the company is required to sign a bailment agreement with the GCBA, with the latter holding the property free of charge for a period of up to 30 months, in accordance with the conditions agreed upon in the auction.

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. As a result of important developments, the intersection of Av. General Paz and Panamericana have experienced great growth in recent years. In April 2018, both plots were unified into a single one of 12,800 square meters.

Paseo Colón 245 Building and Paseo Colón 275 Parking spaces - City of Buenos Aires

On December 28, 2022, the company was awarded two Public Auctions (2901 and 2902) 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 (with the option to extend it for 6 additional months under rental agreement), 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 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, the company has land on which it 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 and, according to urban planning standards, around 6,000 square meters may be built. Its intended use, either through the company's own development or sale to a third party, is residential with the possibility of a retail space as well. In November 2014, a barter deed was executed to carry out a residential development, in consideration of which IRSA will receive 1,389 square meters of retail stores located on the ground floors of blocks 99 and 95 at Güemes 836 and Güemes 902, respectively. In June 2018 an extension to the barter agreement was signed. On June 27, 2023, the closing of the barter was signed, which corresponds to the delivery of 2 retail spaces with 1,389 sqm, 2 apartments and 4 parking spaces, considered inventories and the reincorporation of Plot B as land reserve.

Other Land Reserves - Pilar, Pontevedra, San Luis Plot and Llao Llao Plot.

The company grouped here those plots of land with a significant surface area the development of which is not feasible in the short term either due to their urban and zoning parameters, their legal status or the lack of consolidation of their immediate environment. This group totals around 3.3 million square meters.

Other segment

This segment includes the entertainment activities through La Arena S.A., La Rural S.A. y Centro de Convenciones Buenos Aires, We are appa S.A. (We Are Appa), investments in associates like GCDI and the financial activities carried out by Banco Hipotecario and Banco de Credito y Securitización S.A. (BACS).

Over the years, the company has acquired 29.91% of the equity of Banco Hipotecario S.A. (Banco Hipotecario). Banco Hipotecario has historically been Argentina's leading mortgage lender, provider of mortgage-related insurance and mortgage loan services.

Also, as of June 30, 2023, the company owned 27.8% of GCDI S.A. (GCDI) capital stock, a construction and real estate company listed on the ByMA.

In order to expand its business to digitalization, the company incorporated on October 8, 2018, We are Appa S.A., with the social purpose of design, programming and development of software, mobile and web applications. As of June 30, 2023, IRSA's interest in We are Appa S.A. was 98.7%. Also, as of June 30, 2023, the company indirectly had a participation of 4.1% in Avenida Inc., a company dedicated to the e-commerce business.

La Rural (Convention Centers and Fairs Activities) and La Arena

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 province of Buenos Aires.

GCDI S.A. (Real Estate)

GCDI S.A. 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.

We are appa S.A.

On October 8, 2018, the company We are appa S.A. was incorporated, with the social purpose of design, programming and development of software, mobile and web applications. As of June 30, 2023, IRSA's share of 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, the company indirectly owned 14.87% of Comparaencasa S.A.

Turismo City

The company 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

As of June 30, 2023, the company held a 29.91% of the equity of in Banco Hipotecario. All its operations are located in Argentina where it operates a nationwide network of 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.

Banco Hipotecario's subsidiaries include BACS Banco de Credito y Securitización S.A., 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.

Dispositions

On November 23, 2022, Zetol, subsidiary of Liveck S.A., sold the property number 46,931 located in Ciudad de la Costa, department of Canelones, to the Boating Trust.

Regulations

In the city of Buenos Aires, where the vast majority of the company's real estate properties are located, the company is subject to Buenos Aires Urban Planning Code (Código de Planeamiento Urbano de la Ciudad de Buenos Aires) and the Buenos Aires Building Code (Código de Edificación de la Ciudad de Buenos Aires).

History

IRSA Inversiones y Representaciones Sociedad Anónima was founded in 1943. The company was incorporated under Argentine law as a stock corporation (sociedad anónima) in 1943.