IRSA Inversiones y Representaciones Sociedad Anonima Announces Execution of Acquisition of Stake in Alto Palermo

BUENOS AIRES, Argentina, Oct. 18 /PRNewswire-FirstCall/ -- IRSA Inversiones y Representaciones Sociedad Anonima (NYSE: IRS; BASE: IRSA), the leading real estate company in Argentina, announced last October 15 that on such date, it executed the acquisition of Parque Arauco S.A.'s direct and indirect stake in Alto Palermo S.A. (APSA). The execution occurred after the settlement of US$ 126 million, of which US$ 6 million were paid by the Company at the time the option was granted.

According to the option granted on January 13, 2010, the dividends corresponding to the fiscal year closed on June 30, 2010 were deducted from the acquisition price.

In this way, IRSA's successful relationship developed with Parque Arauco S.A., a strategic partner of excellence, has reached a satisfactory conclusion, envisioning a future where the parties might join forces again to face new challenges.

Finally, as from October 15, 2010, IRSA holds a 94.89% stake in Alto Palermo S.A., thus increasing its leadership position in the Shopping Center Business, while consolidating its growth strategy, for the benefit of its Shareholders

IRSA Inversiones y Representaciones S.A. (NYSE: IRS, BASE: IRSA) is Argentina's largest, most well-diversified real estate company, and it is the only company in the industry whose shares are listed on both 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 a stake in Banco Hipotecario, Argentina's largest mortgage supplier in the country.

SOURCE IRSA Inversiones y Representaciones Sociedad Anonima