IPS Halts Property Rentals, Demands Regulatory Review Amid Invasion Fears

The administration of the Institute of Social Security (IPS) has halted property rental contracts and is demanding a review of real estate regulations. This decision comes amid concerns about the imminent risk of property invasions and the abandonment of valuable assets. The administration has urged the Superintendency of Pensions to provide responses to these pressing issues.

During a board meeting, a key point of debate was a proposal to authorize the subscription of a lease agreement for a property owned by IPS. The building, known as "La Gran Manzana" and located in La Recoleta district, was proposed for lease to the firm Mate Charrúa S.A. for a five-year term. The company currently pays a monthly rent of G. 10 million and proposed to double it to G. 20 million. Additionally, they offered an upfront payment of G. 120 million, equivalent to six months' rent, to be paid at the beginning of each year.

“

I am concerned about the number of properties that are falling apart. As they are, they have a relative value, but if everything collapses, only a bare lot remains. There is another bigger problem, we don't even have money to pay the taxes on these properties. I believe our primary obligation is to protect those assets.

However, several board members expressed skepticism. They pointed to a recent contract with Banco Familiar for a space in the same block, where 400 square meters were leased for G. 49 million per month. This disparity raised alarms about the lack of a unified valuation and per-square-meter collection criteria. Board members questioned the informality among various tenants and the potential for legal and accounting risks due to missing contracts. "I am concerned about the number of properties that are falling apart. As they are, they have a relative value, but if everything collapses, only a bare lot remains. There is another bigger problem, we don't even have money to pay the taxes on these properties. I believe our primary obligation is to protect those assets," stated Isaías Fretes, the board's leader.

Concerns were also voiced about the decay of IPS properties and the threat of usurpation. The lack of clear contracts and documentation for collections raised serious questions about the institution's operational integrity. The board's decision to halt new rental agreements and demand regulatory revisions underscores a broader concern about the management and protection of IPS assets.

“

There are no contracts, how are they registering? This institution is supposed to be serious. It must be documented.