User 91125

Cresud: Where the Safe Money Is Going

A significant component of Cresud's net asset value lies in its stake in IRSA, owner of commercial real estate in Argentina and stakes in a few other affiliated real estate companies. IRSA has a lot of debt which poses a risk of a dilutive debt refinancing or potentially even bankruptcy, either of which would erase a significant portion of Cresud's NAV. If Cresud were only a farmland owner, it would be much more attractive.