The Administrative Council of the Social Security Institute (IPS), Paraguay’s social security and public health institution, examined on Tuesday the 8th the situation of three major real-estate holdings: Villa Santo Domingo, Isla de Francia and the Cantegrill condominium. The data presented pointed to low returns, payment defaults, expired contracts and legal disputes.
The session was led by Isaías Brítez. At the Villa Santo Domingo complex, located at the corner of Doctor Fleming Street and Santísimo Sacramento Avenue in Asunción, IPS is considering allocating part of the facilities to doctors and residents from the interior who travel to the capital for training in surgery, internal medicine, pediatrics and gynecology.
IPS President Andrés Gubetich argued that professionals in training should have a place to sleep and shower during their stay in Asunción. The proposal calls for the institution’s health department to draw up a formal program after a tender for the property ended without any interested bidders.
In the Isla de Francia area, covering nearly eight hectares divided into two sections and 17 lots, the Investment Directorate reported that its current book value is approximately 23.498 billion guaraníes. The land was acquired in 1976 and 1977 for 94.810 million guaraníes.
Despite its asset value, revenue was 1.348 billion guaraníes in 2025, an average of 112.365 million per month. Through August of this year, 923.054 million had been collected, or 115.381 million per month. The estimated return ranges from 5% to 5.7%, which council member Ramón Zarza, the Labor Ministry’s representative, considered insufficient.
Several occupants’ contracts expired in March 2024. Óscar Martínez, head of the Leasing Department, said IPS had tried to update the amounts, with adjustments such as those from 20 million to 30.5 million guaraníes and from 6.5 million to 9.523 million. Some tenants refused new contracts and continued paying the previous amounts.
IPS Legal Director Pablo Morínigo reported that eviction proceedings are under way and that cases are before the Supreme Court of Justice. He said rulings favorable to the institution had not been enough to regularize all payments. The Council is considering offering two-year contracts with stricter clauses for future leases.
In Cantegrill, in San Bernardino, IPS owns 46 hectares, equivalent to 459,055 square meters, distributed across 611 lots and 44 blocks. The institution directly owns 327 lots, acquired in 2003 and 2006, with a book value of 109.081 billion guaraníes, or about US$18,000 per lot.
The property accounts for 68% of the assets available for lease by IPS: 327 of the 483 properties listed nationwide. The assessment presented to the Council was that more efficient use of Cantegrill could reduce the institution’s real-estate supply deficit by nearly 30%.