La Providencia Country Club (LPCC), our project in Argentina is progressing on schedule. The project has received strong support both locally and overseas. Recently, at a Polo charity event held in Singapore, the Argentinian ambassador commended our project in front of a crowd of Argentinian expatriates and their families.
For soccer fans, River Plate players are even considering our project as one of their residences when they have games in Buenos Aires. For non-soccer fans, River Plate is one of the two largest soccer clubs in Argentina.
While the project is progressing well, the recent Argentina election and the follow-on policies by the new government have had an immediate and adverse impact on our cash flow. Currently, the government has imposed currency controls and are considering several new taxes that are not market friendly. As a result of uncertainty in policy direction, real estate purchases, including those at our projects, have grounded to a halt. We expect this situation to persist for at least the next 6-8 months before any clarity on policy direction.
Meanwhile, we are working on other avenues to generate revenue for our Argentina investment. On the new lands we purchased, we have obtained zoning approval from the Municipality re-classifying them from rural to urban. We have also obtained the initial technical permission from the Provincial government for our plan to expand LPCC. We are working towards getting the final planning permission by mid 2020 and, if the conditions are conducive, will consider commencing the next phase of our project development in the second half of 2020.
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