BUENOS AIRES, Argentina, Dec. 21 /PRNewswire-FirstCall/ -- By letter dated December 21, 2007, filed with the Argentine Comision Nacional de Valores, IRSA Inversiones y Representaciones S.A. ("IRSA" or "the Company") provided further information regarding the current status of the Santa Maria del Plata project and certain related developments that have taken place recently, including the latest approval of the specific ruling on the project by the Chief of Government of the City of Buenos Aires.
1. Background
In 1997 the Company acquired the premises which the National Executive Branch had assigned to athlete residence of the Olympic Games (Olympic Village) in case Buenos Aires was chosen as host city to hold the Olympic Games (former Boca Juniors Football Club sports town), currently owned by our subsidiary Solares de Santa Maria S.A. From that date onwards, the company has brought a proceeding to validate and approve a mixed use development project (hereinafter the Project) to be built in the lot, before the governmental authorities of the City of Buenos Aires, filing the dossier and meeting all the requirements set forth in the Rule passed by the Legislative Branch of the City of Buenos Aires in 1992. The above-mentioned rule (Ordinance 45,665/92) passed by the City Council of the City of Buenos Aires and published in the Official Gazette in January 1992, provided general urban standards to the lot, and stated that the "Site urban design" was to be submitted to the approval of the Urban Planning Council (Consejo de Planificacion Urbana - "COPUA") (Executive Branch).
The recent approval of the Project concerned by Decree 1584/2007 of specific character, issued by the Executive Branch of the Government of the City of Buenos Aires, met the requirements set forth in the rule currently in force (Ordinance 45,665/92), and all Competent Bodies took part in the assessment thereof. The assignment of Places for Public Use and Convenience is the maximum one provided for in the Planning Code: 50% of the Lot shall be donated for public use and convenience, (357,975 m2) inside which a common, nautical and recreation areas, roads, pedestrian lanes and so forth will be found.
2. Evolution of Approval Stages
Since its beginning, the Project has been regularly updated and requests towards final approval have been periodically filed, particularly during the last 7 years, pursuant to requirements made by the authorities holding office from time to time and according to the guidelines issued by each competent agency from the beginning of the process. As different authorities have ruled the City, we have been dealing with diverse formal channels, aiming to obtain the final authorization of the Project:
- 2000 - IRSA filed a Master Plan for Santa Maria del Plata site, which was assessed by COPUA and submitted to the Town Treasurer's Office, which would take part in the entire proceeding to finally approve the Project. - 2002 - By Decree 405/02, the Government issued Notice of Public Hearing to be held in June 2002, which was carried out with the presence of several professional and private entities and assessed by all Competent Agencies. - 2003 - In June, by Resolution 1004- SSEPyDU-03, the Environmental Impact Statement is issued. - On August 12, 2003, IRSA filed the Amendment of the Project to adjust it to the recommendations made by the Public Hearing. - In December 2005 the Hydraulic General Bureau gave its consent to the project. - In July 2006 COPUA made some recommendations about the project. - On December 13, 2006, IRSA filed an amendment to the project to adjust it to the recommendations made by COPUA, that included the following: 1. The project meets the Guidelines of the Environmental Urban Plan 2. The project is comprised within the proposals for the strategic development of the City's Southern Area. 3. A perimetrical pedestrian lane is designed along the entire site on the Rio de la Plata bank. 4. Maximum integration with the city is planned, continuing with the surrounding urban landscape, designing a shore park on Rio de la Plata bank and providing vehicle access to the avenues surrounding the site. 5. Donation of 50% of the Lot to the GCBA is proposed for Public Use and Convenience, which is the maximum amount set forth in the Planning Code. 6. The specific ruling within the scope of Ordinance N. 45,665/92, Law 23,738/89 and Decree 5783/92 is proposed. - On March 29, 2007, COPUAM (Advisory Body of Government composed by Advisors from the Legislative and Executive Branches) in whole session passed the 145-COPUAM-07 REPORT, which set forth that "this Council has no objections whatsoever from the urban point of view, to IRSA's proposal," and requested the General Treasury to issue a decision concerning the ruling scope proposed. - In May 2007, the Traffic Undersecretary took part at the request of the Treasury, requesting a new traffic study for the area. - In July and November 2007, in two new interventions, the General Town Treasury carried out a comprehensive study of the urban proposal and bill of Decree submitted to consideration, stating that "there is no legal hindrance to continue with the Bill of Decree." - Prior to Execution, the Decree was subscribed by: the Minister of Planning and Public Works, the Traffic and Transport Undersecretary, the Treasury Department and the General Technical Administrative and Legal Bureau of the Ministry of Planning and Public Works. - Having complied with all legal and technical instances during the last 11 years as from the date when the corresponding dossier was opened and during 15 years as from the date when the general ruling on the site was passed by the Town Council, the Chief of Government of the City, in exercise of powers conferred upon him, on November 9, 2007, set his hand on Decree N. 1584/07, which passed the specific ruling. - On December 1, 2007 Decree N. 1584 was published in the Official Gazette N. 2815, fulfilling all legal rules in force. 3. NEXT STEPS
Notwithstanding the issuance of Decree N. 1584/07, matters concerning operation and implementation, under the different sectors of urban agencies of the City of Buenos Aires, are still pending.
Without prejudice to the above statements, we have learned that the Decree has been judicially challenged on formal and procedural aspects. At the time of this report, the Company has not been duly notified about any decision issued by the authorities concerning said objections.
In that sense, and if appropriate, the Company will eventually evaluate what measures to take in order to protect the acquired rights.
About IRSA and Santa Maria del Plata:
"IRSA Inversiones y Representaciones S.A." is Argentina's largest, most well-diversified real estate company and it is the only company in the industry whose shares are listed on the Bolsa de Comercio de Buenos Aires and The New York Stock Exchange. Through its subsidiaries, IRSA manages an expanding top portfolio of shopping centers and office buildings, primarily in Buenos Aires. The company also develops residential subdivisions and apartments (specializing in high-rises and loft-style conversions) and owns three luxury hotels. Its solid, diversified portfolio of properties has established the Company as the leader in the sector in which it participates, making it the best vehicle to access the Argentine real estate market. Additionally, IRSA owns an 11.8% stake in Banco Hipotecario, Argentina's largest mortgage supplier in the country.
"Santa Maria del Plata" is a 70-hectare plot of land owned by "Solares de Santa Maria S.A.", an IRSA subsidiary, where the Company intends to develop a residential project featuring mixed uses, including offices, retail stores, a hotel, sports and sailing clubs and service support areas such as school, supermarket and parking areas. The plan is to set Santa Maria del Plata as a new neighborhood in the city of Buenos Aires, a 5-minute drive away from Downtown, with spaces (35 hectares) for public use as parks, boulevards, and waterfront sidewalks.
Contact Information: Esteban Grinberg IRSA Inversiones y Representaciones S.A. Investor Relations Officer +5411-4323-7367
