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The sale of the property located in one of the most exclusive corners of the City of Buenos Aires exceeded all expectations. Leading developers from the real estate sector participated, competing in an auction with great interest.
The corner of Cerviño and Ortiz de Ocampo attracts real estate developers due to its strategic location in Palermo
A property belonging to the National Institute of Agricultural Technology (INTA), located on the corner of Cerviño and Ortiz de Ocampo, in Palermo, was awarded for USD 18.5 million in a public auction held on December 23. This building was part of a plan by the national government to sell more than 300 public properties and raise some USD 800 million.
The final price was well above the initial base of USD 6.378 billion and set a historic record for this type of transaction, according to official sources. The auction attracted the attention of 18 registered bidders, including some of the most prestigious companies in the Argentine real estate market. The building was acquired by Brukman Mansilla, a well-known company in the sector.
The State Property Administration Agency (AABE) managed the auction through the digital platform Subast.ar. The National Appraisal Court had initially valued the property at USD 5.741 billion, based on its strategic location and building characteristics, but the offers increased significantly during the process.
The auctioned property has 3,143 square meters of covered space and a high market value in the area.
The building, which is in very good condition, has a total covered area of ??3,143 square meters and capacity for residential or office use. It currently houses administrative offices and some INTA departments, including the National Directorates of Technological Linkage and Institutional Relations, as well as other entities related to agricultural technological innovation.
The operation sparked criticism from unions and workers of the organization, who considered that the decision was due to the underutilization of the property, although this was questioned by various voices. The auction regulations require the buyer to build at least 75% of the permitted covered surface, limiting uses to residential and office projects.
Among the interested companies were big names such as IRSA, Consultatio, Line and ABV, which are competing in large-scale developments in Buenos Aires. These types of projects are common in areas such as Barrio Parque and Palermo Chico, where the value per square meter for sub-division housing is around USD 3,770 according to Zonaprop.
The sale of the INTA building represents one of the most significant steps in the Governments plan to optimize the management of public assets. This program includes unused properties, vacant land and real estate assets in different Argentine provinces.
The auctioned property includes ground floor, first floor and second floor, and has a dining room, kitchen and bathrooms on each level. In addition, the AABE technical specifications specified that the building has a total buildability of 10,126 square meters, although this calculation does not consider possible discounts for common areas or patios. This characteristic allows for the development of a large-scale project in one of the most exclusive areas of the City of Buenos Aires.
The strategic location of the building, close to Barrio Parque and Palermo Chico, gives the property a high commercial appeal. According to Zonaprop, the value per square meter in that area is around USD 3,770 for projects in progress and USD 3,617 for brand new units. This confirms the interest of developers such as Brukman Mansilla, who seek to take advantage of the possibility of building a project with residential and commercial uses in an environment with high real estate value.
The plan for the sale of public properties, which is the subject of this auction, is part of a government strategy to optimize resources. This program includes unused properties, vacant land and underused assets in different parts of the country. The official expectation is that the funds raised will be used to strengthen public policies, although the specific destination of these revenues has not yet been publicly detailed.
The auction also generated resistance from unions and INTA workers, who protested in the weeks leading up to the sale. According to them, the building still had potential for administrative use and the agencys projections indicated that it could be optimized to house up to 256 employees, a much larger number than the approximately 100 currently occupying it.
The buyer, Brukman Mansilla, is now required to comply with building regulations established by the AABE, which require the development of at least 75% of the maximum permitted covered area. These conditions exclude projects intended for schools, green spaces or non-residential or office uses. |
