<SEC-DOCUMENT>0001654954-18-006469.txt : 20190920
<SEC-HEADER>0001654954-18-006469.hdr.sgml : 20190920
<ACCEPTANCE-DATETIME>20180611111509
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001654954-18-006469
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20180611

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			IRSA INVESTMENTS & REPRESENTATIONS INC
		CENTRAL INDEX KEY:			0000933267
		STANDARD INDUSTRIAL CLASSIFICATION:	LAND SUBDIVIDERS & DEVELOPERS (NO CEMETERIES) [6552]
		IRS NUMBER:				000000000
		FISCAL YEAR END:			0630

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		BOLIVAR 108
		CITY:			BUENOS AIRES
		STATE:			C1
		ZIP:			C1066AAD
		BUSINESS PHONE:		00541143237449

	MAIL ADDRESS:	
		STREET 1:		BOLIVAR 108
		CITY:			BUENOS AIRES
		STATE:			C1
		ZIP:			C1066AAD
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
<TEXT>
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<font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<font>&#xA0;</font>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">SIMPSON THACHER
&amp; BARTLETT LLP</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">425 LEXINGTON
AVENUE</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">NEW YORK, N.Y.
100173954</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(212)
4552000</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">FACSIMILE (212)
4552502</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">DIRECT DIAL
NUMBER</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(212)
4553066</font></div>
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">EMAIL</font></div>
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">ADDRESS</font></div>
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">jmercado@stblaw.com</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: right; margin-left: 24px; margin-right: 0px; text-indent: 0px"><font>&#xA0; <font style="font-size: 13px; font-family: Times New Roman">June 11,
2018</font></font></div>
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<table cellpadding="0" cellspacing="0" style="text-align: left; font-family: inherit; font-size: inherit;width: 100%;">
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</td>
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<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Robert
F. Telewicz, Jr.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Branch
Chief</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Office
of Real Estate and Commodities</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Securities
and Exchange Commission</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Division
of Corporation Finance</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">100 F
Street, NE</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Washington,
D.C. 20549</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 48px">
<div style="display: table-row">
<div style="display: table-cell; width: 48px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Re:&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-weight: bold; font-family: Times New Roman; font-size: 13px">
IRSA Inversiones y Representaciones Sociedad
An&#xF3;nima</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Form 20-F for the fiscal year ended June 30, 2017</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Filed October 31, 2017</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
File No. 001-13542</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Dear
Mr. Telewicz:</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px">On
behalf of our client IRSA <font style="color: #000000">Inversiones
y Representaciones Sociedad An&#xF3;nima</font><font style="text-decoration: underline; color: #000000">&#xA0;</font>(the
&#x201C;Company&#x201D;), we are writing to respond to comments
raised in the Staff&#x2019;s comment letter dated May 14, 2018 (the
&#x201C;Comment Letter&#x201D;) relating to the above-referenced
annual report (the &#x201C;Annual Report&#x201D;) of the Company
<font style="color: rgb(0, 0, 0);">filed</font> on October 31, 2017
pursuant to the Securities Exchange Act of 1934, as
amended.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px">We are
providing the following responses to the comments communicated by
the Staff in the Comment Letter. For convenient reference, we have
reproduced below in bold the text of the comments <font style="color: #000000">set forth in</font> the <font style="color: #000000">Comment Letter</font>. The responses and
information described below are based upon information provided to
us by the Company.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-weight: bold; font-family: Times New Roman; font-size: 13px">
Form 20-F for the fiscal year ended June 30, 2017</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-weight: bold; font-family: Times New Roman; font-size: 13px">
Item 5. Operating and Financial Review and Prospects</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-weight: bold; font-family: Times New Roman; font-size: 13px">
Critical Accounting Policies and Estimates, page 141</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-weight: bold; font-family: Times New Roman; font-size: 13px">
Effects of foreign currency fluctuations, page 145</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
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<div style="display: table-row">
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<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px"><font style="text-decoration: underline">
</font>1.&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">We note your disclosure that depreciation of
the Peso increases the value of your properties as measured in
Pesos as typical real estate transactions in Argentina are
negotiated and prices are set in US Dollars. Please provide us more
detail about your fair value calculation for investment properties.
In your response, please explain in greater detail why the value of
assets not denominated in U.S. dollars have fair values dependent
on the exchange rate between the U.S. dollar and your functional
and presentation currency</font>.</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">In
response to the Staff&#x2019;s comment, the Company wishes to
clarify the following:</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="margin-left: 72px; display: table">
<div style="display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">The fair value of
the Company&#x2019;s portfolio of office buildings and undeveloped
parcels of land in Argentina is generally determined using the
market approach. Under the market approach, the Company uses prices
and other relevant information derived directly from publicly
available information regarding comparable market transactions. As
such, the Company fair values its portfolio by reference to the
price per square meter achieved in recent sales of comparable
properties, adjusted for the relevant asset&#x2019;s relevant
characteristics, as necessary. There has always been an active
market for sales of office properties and undeveloped land in
Argentina.</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 96px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Argentine economy has experienced significant volatility in recent
decades, characterized by periods of low or negative GDP growth,
high rates of inflation and currency depreciation. Historically,
the public in Argentina has resorted to investing in real estate
assets to protect against currency depreciation and/or to protect
savings. Real estate transactions in Argentina, and in particular,
those involving office buildings and undeveloped land, have
historically been priced in US dollars and transacted in US dollars
or its peso equivalent at the exchange rate on the closing date of
the transaction. Even in the inflationary context, prices in US
dollars for these real state assets have generally remained stable
and even appreciated at rates that have outpaced inflation. A
significant depreciation or devaluation of the peso against the US
dollar would increase the value of the Company&#x2019;s portfolio as
measured in pesos. An appreciation of the peso against the US
dollar would have the opposite effect.</font></div>
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</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="margin-left: 72px; display: table">
<div style="display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">The fair value of
the Company&#x2019;s portfolio of shopping malls in the Argentine
Operations Center is determined by the income approach. Under the
income approach, the Company uses a cash flow model discounted to
present value. The Company determines expected cash flows relating
to each shopping mall property and adjusts these cash flows using
the appropriate discount rate. The Company projects each
property&#x2019;s cash flows in pesos, which is the Company&#x2019;s
functional currency, and these cash flows include the effects of
estimated inflation rates for the projected period. It is important
to point out that due to the current structure of the
Company&#x2019;s lease contracts, generally shopping mall leases
include provisions that provide for payment of variable rent based
on sales of the Company&#x2019;s shopping mall tenants. Therefore,
the projected cash flows for these properties generally are highly
correlated with GDP growth and inflation rates. Due to the
considerations of the Argentine economy discussed above, there is
no available long-term peso-denominated interest rate to discount
the projected inflation-adjusted cash flows of the Company&#x2019;s
shopping mall properties. Accordingly, for these purposes, the
Company translates projected peso-denominated cash flows into US
dollars using a projected US dollar-peso exchange rate for the
period involved. Once the US dollar-equivalent projected cash flows
are determined, they are then discounted at a US dollar-denominated
long-term interest rate, which is intended to reflect the
Company&#x2019;s cost of capital. The present value so determined in
US dollars is then recorded in pesos in the Company&#x2019;s
financial statements using the prevailing exchange rate at the
balance sheet date. Although, the present value of the
Company&#x2019;s portfolio may remain stable in US dollars, any
depreciation or devaluation of the peso against the US dollar would
increase the value of the Company&#x2019;s investment properties as
presented in pesos.</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Investment
properties were valued by independent professionally qualified
appraisers who hold a recognized relevant professional
qualification and have experience in the locations and segments of
the investment properties appraised.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-weight: bold; font-family: Times New Roman; font-size: 13px">
Consolidated Financial Statements</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-weight: bold; font-family: Times New Roman; font-size: 13px">
10. Investment Properties, page F-73</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="margin-left: 0px; display: table">
<div style="display: table-row">
<div style="text-align: left; display: table-cell; width: 48px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px"><font style="text-decoration: underline">
</font>2.&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold; color: #000000">Please tell us the factors that
lead to your decision to change your accounting policy with
respect</font> <font style="font-weight: bold">to</font>
<font style="font-weight: bold; color: #000000">the valuation of
investment properties. In your response, tell us the factors that
lead you to initially select cost basis for valuing your investment
properties, and the changes in circumstances that lead you to
revise your policy. Please refer to paragraph 14 of IAS 8 and
paragraph 31 of IAS 40 in your response</font><font style="color: #000000">.</font></font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">In
response to the Staff&#x2019;s comment, the Company advises the
Staff that the Company adopted IFRS as issued by the IASB for the
first time for its fiscal year ended June 30, 2013. The Company
previously prepared its publicly available financial statements
under Argentine GAAP and measured its investment properties
(although classified as property, plant and equipment under
Argentine GAAP) at historical acquisition cost. Investment
properties was a significant and core asset for the Company. At the
time of first adoption of IFRS, the Company reclassified the asset
amount from property, plant and equipment to investment properties,
and as permitted by IAS 40, it elected to continue measuring its
portfolio of investment properties under the cost method for
consistency purposes. The main factor the Company considered at
that time was not to significantly change the value of the
Company&#x2019;s core assets (investment properties), considering
IFRS permitted that option and because the fair value of these
assets was disclosed as required by IAS 40, paragraph 79.
Therefore, investors had the same measurement basis for the core
assets and an estimate of its fair value disclosed in the notes to
the audited consolidated financial statements.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">After
several years of moderate inflation and variations in the nominal
exchange rate, in fiscal year 2012 the peso depreciated
approximately 14.3% against the U.S. dollar. This was followed by a
32.5% depreciation of the peso against the U.S. dollar in fiscal
year 2013 and 30.3% in fiscal year 2014, including depreciation of
approximately 21.6% in the month of January 2014 alone. In fiscal
year 2015, the peso depreciated 52.7% against the dollar with a 33%
depreciation in the last weeks of December 2015 alone. In fiscal
years 2016 and 2017 the peso depreciated a further 20.5% and 18.5%,
respectively, against the dollar. Inflation rates increased year
after year during the same period.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company relies on long-term financing for its investment projects,
and substantially all of its long-term financing is denominated in
US dollars due to the lack of a market for long-term
peso-denominated debt financing. Given the financing structure of
the Company, the use of the cost basis to value its core assets
during periods of high inflation and currency depreciation in
Argentina produce a natural mismatch between its assets and
liabilities. Also, a substantial portion of the Company&#x2019;s
regional peers have adopted a fair value model, rendering the
comparison of the Company&#x2019;s financial statements to those of
its peers more difficult. Due to these factors, the Company
reconsidered the fair value option permitted under IAS 40. The
Company analyzed the provisions of IAS 8, paragraph 14 and IAS 40,
paragraph 31, and concluded that the change from the cost model to
fair value would (i) lead to a more reliable and meaningful
presentation of the Company&#x2019;s financial position and results
of operations and (ii) facilitate comparisons by investors,
research analysts, lenders and other interested parties to peers in
the industry.</font></div>
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<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="margin-left: 0px; display: table">
<div style="display: table-row">
<div style="text-align: left; display: table-cell; width: 48px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">3.</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold; color: #000000">Please</font> <font style="font-weight: bold">explain</font> <font style="font-weight: bold; color: #000000">to us how you determined
certain investment properties should be classified in level 2 of
the fair value hierarchy. In your response, tell us the lowest
level of input that is significant to the measurement of these
properties, and explain to us how that input falls within level 2.
Refer to paragraphs 81 to 85 of IFRS 13</font><font style="color: #000000">.</font></font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">In
response to the Staff&#x2019;s comment, the Company advises the
Staff that investment properties classified in level 2 of the fair
value hierarchy established by IFRS 13 comprise office buildings
and undeveloped land.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">As
discussed in the Company&#x2019;s response to comment No. 1 above,
the fair value of the Company&#x2019;s office buildings and
undeveloped land is determined under the market approach pursuant
to which the Company uses prices and other relevant information
derived directly from publicly available information about
comparable market transactions to value these properties. As such,
the Company fair values its portfolio by reference to the price per
square meter achieved in recent sales of comparable properties,
adjusted for the asset&#x2019;s specific characteristics, as
necessary.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">As set
forth in IFRS 13, paragraph 73, a fair value measurement is
categorized, in its entirety, at the same level of the fair value
hierarchy of the lowest-level input that is significant to the
entire valuation. An input is significant if it may result in a
significantly different fair value measurement. In its analysis of
the fair value hierarchy for investment properties classified in
level 2, the Company considered the inputs that factor into the
fair value measurements, the relative significance of each of the
inputs and whether those inputs are externally observable and
verifiable or derived from internal estimates. Accordingly, the
Company considered that the publicly available, observable and
verifiable prices per square meter for office buildings and
undeveloped land were the lowest-level inputs that were significant
to the entire valuation. Although adjustments to the level 2 inputs
required the Company to consider factors such as the condition or
geographic location of the relevant asset, the Company considered
that these adjustments were not significant to the fair value
measurement category.</font></div>
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<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-weight: bold; font-family: Times New Roman; font-size: 13px">
Form 6-K filed February 27, 2018</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-weight: bold; font-family: Times New Roman; font-size: 13px">
Summary as of December 31, 2017, page 2</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="margin-left: 0px; display: table">
<div style="display: table-row">
<div style="text-align: left; display: table-cell; width: 48px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px"><font style="text-decoration: underline">
</font>4.&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold; color: #000000">We note your inclusion of the
non-IFRS performance measures EBITDA and Adjusted EBITDA. In future
filings, revise your disclosure to provide a quantitative
reconciliation of the differences between these measures and the
most directly comparable</font> <font style="font-weight: bold">financial</font> <font style="font-weight: bold; color: #000000">measures calculated in
accordance with IFRS</font><font style="color: #000000">.</font></font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">In
response to the Staff&#x2019;s comment, the Company will disclose in
its future Exchange Act filings a quantitative reconciliation of
the non-IFRS <font style="color: #000000">performance measures to
the most directly comparable financial measure calculated in
accordance with IFRS</font>.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-weight: bold; font-family: Times New Roman; font-size: 13px">
7. Investment Properties, page 11</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="margin-left: 0px; display: table">
<div style="display: table-row">
<div style="text-align: left; display: table-cell; width: 48px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px"><font style="text-decoration: underline">
</font>5.&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold; color: #000000">Tell us how you considered the
need to disclose the business or economic circumstances that lead
to the change in value of your investment properties during the
period,</font> <font style="font-weight: bold">including</font>
<font style="font-weight: bold; color: #000000">the material
assumptions used in the valuation of your properties and related
sensitivity analyses. Reference is made to paragraph 91 of IFRS 13
and paragraph 15 of IAS 34</font><font style="color: #000000">.</font></font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">In
response to the Staff&#x2019;s comment, the Company advises the
Staff that in preparation of the Company&#x2019;s interim financial
information, it gave consideration to paragraph 91 of IFRS 13 and
paragraph 15 of IAS 34. As such, the Company disclosed the
following in Note 8 to the consolidated financial statements as of
December 31, 2017 and for the six months then ended:</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="margin-left: 72px; display: table">
<div style="display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">No changes were
made to the valuation techniques with respect to those applied as
of June 30, 2017.</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="margin-left: 72px; display: table">
<div style="display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">The Company
incorporated the effects of the recently approved tax reform in
Argentina in its projected cash flows.</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">In
addition, the increase in fair value of the Company&#x2019;s
investment properties during the period was primarily the result of
the following: (i) a 25 basis points decrease in the discount rate
applied in calculating the discounted cash flows used to value the
Company&#x2019;s portfolio of shopping malls; and (ii) during the
period from July 1, 2017 to December 31, 2017, the peso depreciated
by approximately 12.2% against the U.S. dollar (from Ps.16.53 per
U.S. dollar to Ps.18.55 per U.S. dollar), resulting in an increase
in fair value of the Company&#x2019;s investment properties during
the period as measured in pesos.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Notwithstanding the
foregoing, the Company advises the Staff that the Company intends
to include additional relevant disclosure in its future Exchange
Act filings to provide further guidance regarding the significant
inputs used at each valuation period.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
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<div id="ftr">
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<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: center; margin-left: 24px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">* * *</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 96px"><font style="font-size: 13px; font-family: Times New Roman">Please do not
hesitate to contact me (212-455-3066) with any questions you may
have regarding the above responses.</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 96px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 444px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Very truly
yours,</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
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<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">By: /s/ Jaime
Mercado</font></div>
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<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Jaime
Mercado<br></font></div>
</td>
<td style="width: 12%; vertical-align: top">
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<font style="font-size: 13px; font-family: Times New Roman">cc:&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">Mat&#xED;as
Gaivironsky</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 48px">
<font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">Leonardo
Magliocco</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 48px">
<font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px;">Eduardo
Loiacono<br></font></div>
</div>
</div>
<div style="text-align: left; margin-left: 72px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Mariano
Tomatis<br></font></div>
<div style="text-align: left; margin-left: 72px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">David L.
Williams</font></div>
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