Company: CRESW
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001654954-25-012195
Chunk: 124

Company: CRESUD INC
Filing Date: 2025-10-24
Form: 20-F
Item: Item 3
Chunk 124
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, caused by inflation or by other factors could have a material adverse effect on us if our tenants are unable to pay higher rent as a result of increased expenses.

IRSA’s investment in property development and management activities may be less profitable than IRSA anticipate.

IRSA is engaged in the development and construction of properties to be used for office, residential or commercial purposes, shopping malls and residential complexes, in general through third-party contractors. Risks associated with our development, reconversion and construction activities include the following, among others:

·                                                                                             abandonment of development opportunities and renovation proposals;                                                                                          
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·   construction costs may exceed our estimates for reasons including higher interest rates or increases in the cost of materials and labor, making a project unprofitable;                                                                               
·   occupancy rates and rents at newly completed properties may fluctuate depending on a number of factors, including market and economic conditions, resulting in lower than projected rental revenue and a corresponding lower return on our investment;
·   pre-construction buyers may default on their purchase contracts or units in new buildings may remain unsold upon completion of construction;                                                                                                          
·   lack of affordable financing alternatives in the private and public debt markets;                                                                                                                                                                     
·   sale prices of residential units may be insufficient to cover development costs;                                                                                                                                                                      
·   construction and lease commencements may not be completed on schedule, resulting in increased debt service expense and construction costs;                                                                                                            

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·                                   failure or delays in obtaining necessary zoning, land-use, building, occupancy and other required governmental permits and authorizations, or building moratoria and anti-growth legislation;                                 
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·   significant time lags between the commencement and completion of projects subjects us to greater risks due to fluctuation in the general economy;                                                                                                             
·   construction may be delayed because of a number of factors, including weather, strikes or delays in receipt of zoning or other regulatory approvals, or man-made or natural disasters, resulting in increased debt service expense and construction costs; and
·   changes in our tenants’ demand for rental properties outside of Buenos Aires.                                                                                                                                                                                 

IRSA may incur capital expenditures that require considerable time and effort and which may never be completed due to government restrictions or overall market conditions.

In addition, IRSA may face claims for the enforcement of labor laws in Argentina. Many companies hire personnel from third parties that provide outsourced services, and sign indemnity agreements if labor claims from employees of such third parties arise. However, in recent years several courts have rejected