President Javier Milei's government has opened proceedings to sell off a prime part of real estate in Buenos Aires.
The so-called “Portal Palermo” – a plot of land that includes a cut-through to a major avenue and a massive shopping complex that houses a branch of the Jumbo supermarket, home superstore Easy and many other stores – has been plunged into uncertainty after Milei government officials confirmed that the land is to be auctioned off. The decision puts the future of one of the most well-known shopping centres in Buenos Aires City in question.
The premises are made up of 42,000 square metres at the intersection of Avenida Cerviño and Avenida Bullrich, in the heart of Palermo, one of the most expensive and coveted areas in the country. Its value runs into the millions of dollars, and the news has already awakened the interest of big developers dreaming about high rises, luxury offices and new commercial hubs.
The history of the land is linked to a 1994 contract signed with Cencosud SA, the firm that owns Jumbo and Easy. The deal allowed the firm to exploit the site for 20 years, with a further five-year extension. The concession expired in 2019, but the company obtained a special two-year extension with a key clause: the State could sell at any time, provided it gives advance notice. Now, the State Assets Administration Agency has activated that clause and started the sales process.
The agreement to vacate gives Cencosud until December 2026 to abandon the premises. The sole space which will not be included in the transaction is a small area of the neighbouring Army barracks, Infantry “Patricios” Regiment No. 1.
The real-estate sector expects a record-breaking auction. Along with its privileged location, the land is a unique plot in a capital with a decreasing number of free areas for large projects. Urban planning restrictions will define what may be introduced there, but experts say that does not curb investors’ appetite.
This sale falls within the government’s plan to divest itself of state property it deems “unnecessary” to obtain fresh funds.
– TIMES/NA
Comments