Brazil Development Fund

1. Brazil Development Fund
by Origen Private Equity
Project Extremoz
Origen Private Equity Limited. 26 Dover Street. London, W1S 4LY. t: +44 207 084 6293
Friday, 15 April 2011

2. Brazil Facts & Figures
★ GDP of $2.024Tr – ranked 8th largest
★ GDP growth 7.5% (2010 est.) – ranked
5th fastest
★ Population 201.1M – ranked 5th largest
★ Labour Force 103.6M – ranked 6th
largest
★ Unemployment rate 7% - ranked 71st
★ Inflation rate 4.9% (2010 est.)
★ Central bank discount rate – 11.25%
(31st Jan 2011)
★ Stable financial and political
environment
Colors of Brasil- Romero Britto
Origen Private Equity Limited. 26 Dover Street. London, W1S 4LY. t: +44 207 084 6293
Friday, 15 April 2011

3. Brazil Demographics
★ 85 million people represent Brazil
Middle class, an increase of 37% in 2
years
★ Income bracket of 3-10 times
minimum wage (R$650 per month)
★ Housing deficit of 8-10 million
homes
★ 2007 domestic mortgages became
available
★ Mortgage lending growing by 600%
★ Auto sales - up 11.9% to
3.51million units (critical markets for
manufacturers)
★ Smart phones - up 70%
★ Computer sales - up 13% to 14
million units (world’s number 3
market behind USA and China)
★ Televisions up 75% to 13 million
units
★ Credit Cards up 20%
Photo: Gabrielle Motola
Origen Private Equity Limited. 26 Dover Street. London, W1S 4LY. t: +44 207 084 6293
Friday, 15 April 2011

4. Minha Casa Minha Vida
➡ On April 13th 2009, the Brazilian
government implemented the ‘My
House My Life’ programme,
investing 14 billion US $ in the
social housing market.
➡ The objective is to build 1.000.000
social houses in order to close 14%
of the gap of the 7.2 million shortage
of homes.
➡ The programme is being
implemented in the suburbs of the
metropolitan areas, which are well
connected to the city centre and
have substantial industry to provide
employment.
➡ The suburbs of the Gran Natal area
(Extremoz, Parnamirim, Macaíba,
Sao Gonçalo) meet these criteria and
have already been granted subsidised
finance from the state bank Caixa for
21.000 new homes.
Origen Private Equity Limited. 26 Dover Street. London, W1S 4LY. t: +44 207 084 6293
Friday, 15 April 2011

5. Minha Casa Minha Vida II
➡ March 2010 My House My Life II
(MCMV II) was announced
➡ Even more ambitious than the previous
plan:
✓ 2 million new homes
✓ Implemented within 2011-2014
✓ 72 billion R$ (20-30 billion €)
✓ Planned delivery of 500.000 homes
per year
✓ Finance granted by Banco do Brasil
too.
✓ Launch expected for April 2011
Source: President of the Câmara Brasileira da Indústria da Construção Civil (CBIC), Paulo Safady
Origen Private Equity Limited. 26 Dover Street. London, W1S 4LY. t: +44 207 084 6293
Friday, 15 April 2011

6. Natal North Expansion
Natal North Zone is the
fastest expanding part of
Natal, because of the rapidly
expanding Brazilian middle
class is living here
Because there is no more
land available in North Natal
zone, the expansion is taking
place into Extremoz and Sao
Goncalo do Amarante
According to data published by Tribuna Do Norte. 14th March 2010.
Maps by Google
Origen Private Equity Limited. 26 Dover Street. London, W1S 4LY. t: +44 207 084 6293
Friday, 15 April 2011

7. Natal Existing Industries
Only the Guararapes
textile factory
employs 15.850
Despite the employment
workers and keeps
opportunities, there is a expanding
huge shortage of
housing
Workers are brought
from remote areas
by hundreds of buses
Extremoz is home
to Natal’s main
industrial areas,
employing over
30.000 workers
Maps by Google
Origen Private Equity Limited. 26 Dover Street. London, W1S 4LY. t: +44 207 084 6293
Friday, 15 April 2011

8. Selected Plot Extremoz
Maps by Google
Origen Private Equity Limited. 26 Dover Street. London, W1S 4LY. t: +44 207 084 6293
Friday, 15 April 2011

9. Location
A hospital and maternity
The plot is located at only 50 ward is located at walking
metres from the Extremoz distance from the plot
main bus station, which
connects residents with Natal
city, Industrial zone, beaches,
lakes, etc.
The Extremoz railway station
connects residents with Natal
and the industrial areas, up
to Parnamirim.
Maps by Google
Origen Private Equity Limited. 26 Dover Street. London, W1S 4LY. t: +44 207 084 6293
Friday, 15 April 2011

10. Extremoz P&L Statement
Origen Private Equity Limited. 26 Dover Street. London, W1S 4LY. t: +44 207 084 6293
Friday, 15 April 2011

11. Extremoz P&L Statement (Cont.)
Origen Private Equity Limited. 26 Dover Street. London, W1S 4LY. t: +44 207 084 6293
Friday, 15 April 2011

12. Extremoz P&L Statement (Cont.)
Friday, 15 April 2011

13. Project Cashflow Graph
Origen Private Equity Limited. 26 Dover Street. London, W1S 4LY. t: +44 207 084 6293
Friday, 15 April 2011

14. Construction Finance MCMV Caixa
Friday, 15 April 2011

15. Construction Finance MCMV Caixa
Friday, 15 April 2011

16. Plot Summary
Location Extremoz, Rio Grande do Norte, Brasil
GPS coordinates 5 42’14.25’’ S - 3518’06.67’’ W
Dimensions 6,32m (North), 414,96m (East), 43,19m (South), 474.29m (West)
Building potential 43.201m² of construction potential
Maximum Height No restriction defined in zoning plans drawn by local council
Maximum Density 200 units per ha ; max. 576 units
Footprint 80% of the plot has permission to build.
Located right at the town centre, with local amenities and shops available at walking
Facilities distance. 3.5km to industrial sites and 10km from the new airport.
Infrastructure Access by paved road. Electricity, water & telephone supply available.
Due Diligence Positive full Due Diligence report.
Origen Private Equity Limited. 26 Dover Street. London, W1S 4LY. t: +44 207 084 6293
Disclaimer:
This document is intended to reflect the full and correct information available to date. Its purpose is to support the decision making process, and the information is based on supplier proposals, market research and industry benchmarks.
Nevertheless, its contents could change, for example because of changing supplier quotations. No rights can be obtained from this document
Friday, 15 April 2011