First Argentine REIT Fund Buys $3.6 Million Mansion in Barrio Parque

In the midst of the economic crisis gripping the country, a group of entrepreneurs achieved the unthinkable: creating Argentina’s first REIT-style real estate investment fund and, in record time, buying a mansion worth over $3 million in the most exclusive neighborhood of Buenos Aires. The financial vehicle, launched in mid-June, raised no less than $45 million from 3,523 investors, tripling all expectations.

Partners Juan Ignacio Abuchdid of Grupo IEB and developer Beltrán Briones wasted no time: within a month of launch, they deposited $3.6 million for a French-style residence on Mariscal Ramón Castilla Street at 3000, in the heart of Barrio Parque. According to the fund, the price was 14% below the listing price. A bargain or a marketing ploy?

The property spans 700 square meters total, of which 500 are covered. It is distributed over three floors connected by a private elevator, with seven rooms, four suites, five bathrooms, a service area, and two parking spaces. But what stands out most are the luxuries: jacuzzi, sauna, Finnish shower, and a terrace with solarium. A true mansion for the few.

The juiciest part of the deal is that the mansion already has a tenant. The current lease pays $18,000 per month, or $216,000 per year. That gives the fund an annual return of 6%, according to the official statement. Investors, who entered with amounts as low as $1,000, will receive quarterly dividends. It all sounds like a financial paradise, but is it really?

The REIT operates as a fund listed on BYMA and can be bought and sold like any stock through the IEB+ app. The promise is clear: diversify, have liquidity, and not worry about tenants, deeds, or renovations. «You can invest without dealing with anything,» Briones assures. But critics warn that the Argentine real estate market is a volcano and that such instruments, though proven abroad, can be risky here.

The fund, managed by Ciclo Nova Asset Management and with Banco Comafi as custodian, plans to invest one-third of its assets in real estate within the first year, two-thirds within 18 months, and over 75% within 24 months. The bet is that the price per square meter in Buenos Aires, which lags behind the region, will recover and generate capital gains. But in the meantime, investors are content with the rent from this mansion and those to come.

Barrio Parque, bounded by Figueroa Alcorta, Ortiz de Ocampo, Juez Tedín, and Tagle, is a bubble within the Buenos Aires bubble. With only 300 properties, just 25 are for sale. And of those, very few are ready to inhabit. The area has Historical Protection Area status, limiting heights and commercial uses. A paradise for those already inside, but a lock for those wanting to enter.

The numbers are staggering: if Argentina reached Mexico’s level, where REITs represent 5% of GDP, the local market would exceed $35 billion. But for now, this fund is an experiment. The partners are euphoric: «We tripled expectations,» they celebrate. Meanwhile, ordinary investors watch from the sidelines, wondering if this is the start of a new era or just another business for the usual crowd.