IRSA Propiedades Comerciales S A : Shareholders' Meeting - Clarification Point 3 of the Agenda

It is noticed to all Shareholders that having reviewed the equity accounts to be capitalized, it has been detected certain reserves that have been included which are not entitled to be capitalized by the Company

Thereby, the so-called Reserve for changes in the non-controlling interest is not subject to capitalization until the control over the respective subsidiary does not exist and results in a change in the ownership of a company that is in the second line but over which control has not been lost; for its part, the so-called Technical Revaluation Reserve is not subject to capitalization until the asset over which this reserve has been formed is sold; this reserve includes the first change in the fair value of an asset when its use by the company ceases to be a fixed asset and is transformed into an investment property. Lastly, the so-called Conversion Difference Reserve cannot be capitalized except when the significant influence in the related company that formed this reserve is lost and is no longer valued under the proportional equity valuation method and is now valued at cost or fair value depending on the asset type. In conclusion and for the reasons stated, the amount to be effectively capitalized amounts to ARS 53,996,987,920 (fifty-three thousand nine hundred ninety-six million nine hundred eighty-seven thousand nine hundred twenty pesos), generating a difference of ARS 169,116,080 (one hundred sixty-nine million one hundred sixteen thousand eighty pesos) with respect to the proposal included in the item on the agenda. In this sense, the reserves subject to capitalization are: (i) comprehensive adjustment of capital and shares for the sum of ARS 3,390,555,113 (three thousand three hundred ninety million five hundred fifty-five thousand one hundred thirteen pesos); (ii) issue premium in the amount of ARS 9,660,048,796 (nine thousand six hundred sixty million forty-eight thousand seven hundred ninety-six pesos); (iii) special reserve General Resolution CNV 609/2012 for the sum of ARS 9,164,223,299 (nine thousand one hundred sixty-four million two hundred twenty-three thousand two hundred ninety-nine pesos) and (iv) reserve for future dividends in the amount of ARS 31,631,809,393 (thirty-one thousand six hundred thirty-one million eight hundred nine thousand three hundred ninety-three pesos). This clarification over the third item of the agenda is made for the Shareholders so they may adopt an appropriate resolution in this regard.