As a leading company in Argentina engaged in acquiring, developing and managing real estate, we seek to (i) generate stable cash flows through the operation of our real estate rental assets (shopping malls, office buildings, hotels), (ii) achieve long-term appreciation of our asset portfolio by taking advantage of development opportunities, (iii) increase the productivity of our land reserves and enhance the margins of our development and sale of properties segment through partnerships with other developers, and (iv) look for opportunities abroad offering capital gain potential.
Operations Center in Argentina
Shopping Malls: Our main purpose is to maximize our shareholders’ profitability. By using our know-how in the shopping mall industry in Argentina as well as our leading position, we seek to generate a sustainable growth of cash flow and to increase the long-term value of our real estate assets.
We want to satisfy the purchase demand in different urban areas of the country, as well as to improve the shopping experience of our customers. For this, we seek to develop new shopping centers in locations with growth prospects, in Buenos Aires’ Metropolitan area, as well as in cities in the interior of Argentina. The close business relationship that we have maintained for years with our tenants and that we seek to keep in 2020 in the face of the unprecedented closure of operations because of COVID-19 is vital to achieve this strategy.
Offices: We seek to purchase and develop premium office buildings in the core districts in the City of Buenos Aires and other strategic locations that we believe offer attractive returns and potential for long-term capital gain. We expect to continue our focus on attracting premium corporate tenants to our office buildings. Likewise, part of our strategy is the selective sale of our portfolio and the replacement by new units developed by the Company.
Hotels: We believe our portfolio of three luxury hotels diversifies our portfolio and offers us the possibility of taking advantage of the potential growth of tourism in Argentina. To date, we are working on the reopening of our three hotels and on their positioning strategy due to the impact on the sector because of the COVID-19 pandemic.
Sales and Developments: We seek to continue to acquire undeveloped land at attractive locations inside and outside Buenos Aires for the purpose of their appreciation for subsequent sale or potential commercial and/or residential development. We believe that holding a portfolio of desirable undeveloped plots of land enhances our ability to make strategic long-term investments and affords us a valuable “pipeline” of new development projects for upcoming years.
International: In this segment, we seek investments outside Argentina that represent an opportunity of capital appreciation potential in the long term.
Financial Operations and Others: We maintain our investment in Banco Hipotecario, the leading mortgage bank in Argentina, as we believe that we will be able to reach good synergies in the long term in hand with the development of the mortgage market.
Operations Center in Israel
IDBD and DIC are two of the largest and most diversified holding companies in Israel. Through its subsidiaries, associates, joint ventures and other investments, they are engaged in numerous markets and industry sectors in Israel and other countries, including real estate (Property & Building Corporation), insurance (Clal Holdings Insurance Enterprises, hereinafter Clal), and telecommunications (Cellcom). IDBD is listed on the Tel Aviv Stock Exchange (“TASE”) as a “Debentures Company” pursuant to the law, as it has publicly listed bonds, while DIC has its shares and its debt quoting in TASE.
Real Estate (PBC): Property & Building is engaged in the operation of rental properties, which is its main line of business, and the construction of residential properties in trendy areas in Israel and other places in the world. In the rental properties segment, Property & Building is the exclusive owner of the HSBC building located on Fifth Avenue in Manhattan. The building has a surface area of approximately 80,000 square meters, and at present it is fully occupied.
Telecommunications (Cellcom): Cellcom operates and sells diverse communication and ancillary services, such as content and data services. Moreover, it offers fixed-line phone services, data communication services to commercial clients and communications operators, Internet connectivity services, international telephone services, among others. In addition, Cellcom offers Internet TV services to its private customers.
Insurance (Clal Insurance): This company, which is one of the largest insurance groups in Israel, is mainly engaged in pension and social security insurance. Some years ago, IDBD began a process of selling Clal and to date its direct participation is 5.0% of the capital stock.
Others: Includes the assets and income from other miscellaneous businesses, such as technological developments, tourism, oil and gas assets, electronics, and other sundry activities.