Cresud Shs Sponsored American Deposit Receipts Repr 10 Shs (NASDAQ:CRESY) Q4 2020 Earnings Conference Call - Final Transcript
Sep 30, 2020 • 01:00 pm ET
Alejandro G. Elsztain
that were done, all in Brasilagro, the rest of the region didn't sell, BRL84 million in Brasilagro. In the urban business and investments abroad, we had the shopping malls and hotels, the last quarter, suffered a lot since 20 of March, we have the COVID-19 that locked down the country and we shut down all the shopping centers and hotels, and so we are going to see the main effect in the last quarter of this year, and the first quarter of next year. There was a normal operation in the office net segment.
And here, not only normal operation, but many sales that we did during this quarter of last year and the first quarter of next year of 2021, representing $145 million, that at a very low cap rate, we thought it was clever to sell, cancel debt, and begin new constructions, that today are much cheaper to do. And in Israel in this time, negotiations with the IDBD holders reached at the Tel Aviv district this court, ordered the opening of the liquidation procedure against IDBD. We are analyzing the resolution and evaluating the course of action for the future. We are going to the go to more details a little later.
So we can move to next page, and we can see that in the year, we began with a total surface of 731,000 hectares between owned and long-term concessions and we did some small sales. So the four sales done in Brazil are small, in hectares. This shows us how small we did in the middle, the merge of Agrifirma and the purchase of Serra Grande in May for 4,500 hectares. So we grew in the year, so we had our highest production level, selling less than buying, so we grew 4% comparing last year numbers.
Talking about this, the merge with Agrifirma. Here we show, their farms are very adjacent to Chaparral and Jatoba to existing farms that we were selling in parts in the past in Jatoba. In Jatoba, we were selling portion and portion many in the last years. In Chaparral, we didn't begin the sales, but this is majority still ours, and we have the chance of merging these assets in that same neighborhood of Bahia, that gives us more scale, synergies because we don't hire no one to operate these. We have the G&A dilution. We did merge through net asset value to net asset value, considering Brasilagro at BRL31.5 per share. So we issued these shares, and with this issuance, Cresud diluted a little, because of the merge and after the sale that I explained before, that we sold 6% of the shares, we went from the 43% to the 33.6% of the company. So this is the first transaction we did in our history, issuing shares, and we think we are going to keep doing this in Brazil, because this is a very good way to grow and to give synergies to the company.
If we move to