Profile: Irsa Inversiones y Representaciones SA (IRS)
18 Dec 2013
IRSA Inversiones y Representaciones (IRSA), incorporated July 3, 1943, is a real estate company. IRSA is engaged, directly and indirectly through subsidiaries and joint ventures, in a range of diversified real estate related activities in Argentina, including the acquisition, development and operation of shopping centers; the development and sale of residential properties; the acquisition and development of office and other non-shopping center properties primarily for rental purposes; the acquisition and operation of luxury hotels; the acquisition of undeveloped land reserves for future development or sale, and selected real estate investments outside Argentina. The Company operates in six segments: development and sale of properties, office and other non-shopping center rental properties, shopping centers, hotel operations, consumer financing, and financial operations and other. As of June 30, 2012, it owned 29.77%1 of Banco Hipotecario S.A. Effective September 9, 2013, Inversiones y Representaciones SA, a unit of Cresud SA Comercial Inmobiliaria Financiera y Agropecuaria, acquired an undisclosed minority stake in Dolphin Fund Ltd.
As of June 30, 2012, IRSA directly and indirectly owned interests in 19 office and other rental properties in Argentina, which comprised 287,912 square meters of gross leaseable area. Out of these properties, 12 were office properties, which comprised 145,126 square meters of gross leaseable area. During the fiscal year ended June 30, 2012 (fiscal 2012), it had revenues from Offices and other non-shopping center rental properties of Ps. 192.3 million.
IRSA is engaged in purchasing, developing and managing shopping centers through its subsidiary, Alto Palermo S.A. (Alto Palermo). Alto Palermo operates and owns majority interests in 13 shopping centers in Argentina, eight of which are located in the Buenos Aires metropolitan area, and the other five are located in the Provinces of Mendoza, Santa Fe, Cordoba and Salta. Its shopping center segment had assets of Ps. 2,286.5 million as of June 30, 2012, representing 35.4% and 34.6%, respectively. As of June 30, 2012, it owned 95.6% of Alto Palermo. As of June 30, 2012, Alto Palermo’s shopping centers comprised a total of 309,021 square meters of gross leaseable area.
IRSA has developed a consumer finance business through its subsidiaries Tarshop S.A. (Tarshop) and APSA Media. During fiscal 2012, the Company had sold 80% of its interest in Tarshop to Banco Hipotecario and it had a majority interest in APSA Media. Tarshop and APSA Media’s operations consist primarily of lending and servicing activities relating to the credit card products it offers to consumers at shopping centers, hypermarkets and street stores. Its credit card advances is financed through securitization of the receivables underlying the accounts originated. Its revenues from credit card operations are derived from interest income generated by financing activities, merchants’ fees, insurance charges for life and disability insurance, and fees for data processing and other services. The Consumer Finance segment had assets of Ps. 62.5 million as of June 30, 2012, which represented 0.9%, respectively.
Development and Sale of Properties
IRSA is engaged in the acquisition and development of residential apartment complexes and other residential communities for sale is another of the Company’s core activities. The Company’s development of residential apartment complexes consists of the construction of high-rise towers or the conversion and renovation of existing structures, such as factories and warehouses. For the development of residential communities in general, it acquire vacant land, develop infrastructure, such as roads, utilities and common areas, and sell plots of land for construction of single-family homes. The Company’s development and sale of properties segment had assets of Ps. 747.9 million as of June 30, 2012.
As of June 30, 2012, IRSA directly and indirectly owned a majority interest in 19 office buildings and other non-shopping center rental properties in Argentina that in the aggregate represented 287,912 square meters of gross leaseable area. The Company’s offices and other non-shopping center rental properties segment had assets of Ps. 1,363.1 million as of June 30, 2012, representing 20.7%, respectively.
IRSA owns a 50% equity interest in Hotel Llao Llao, located in the outskirts of Bariloche, a 76.34% equity interest in Hotel Intercontinental in the City of Buenos Aires, an 80% interest in Hotel Sheraton Libertador, also in Buenos Aires, and through its subsidiaries, it holds a 49% interest in hotel Esplendor Savoy in the City of Rosario, and an interest in Hersha Hospitality Trust and Supertel Hospitality Inc., which hold several hotel franchises in the United States of America. The Company’s hotels segment had assets of Ps. 727.2 million as of June 30, 2012, representing 11%, respectively.
During fiscal year 2012, IRSA maintained its 29.77% equity interest in Banco Hipotecario. As of June 30, 2012, the Company’s investment in Banco Hipotecario represented 15.5% of its consolidated assets, and during fiscal2012, this investment generated income for 105.0 million, respectively.
IRSA holds a 49% interest in office building located at Madison Avenue in the City of New York. It also has a 49% interest in a US company, whose main asset is the so-called Lipstick office building located in the City of New York. In addition, jointly with subsidiaries, it acquired and then partially sold interests in a Real Estate Investment Trust (REIT), called Hersha (HT), which holds a controlling interest in 64 hotels in the United States, totaling around 9,221 rooms. As of June 30, it holds a 9.13% interest in the Company.
Irsa Inversiones y Representaciones SA
Edificio Intercontinental Plaza
piso 22, Moreno 877
BUENOS AIRES C1091AAQ