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Presentation – CEF Letter of Intent.


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Presentation – CEF Letter of Intent.

  1. 1. Goldfarb straitens relationship with Caixa Econômica Federal and signs a letter of intent to provide mortgage financing for 12 thousand units per year Investors Relations: Michel Wurman Investors Relations Director João Mallet, CFA Investors Relations Manager Gustavo Janer IR Analyst Telephone: +55 (21) 3504-3800 E-mail: Website: 1
  2. 2. Rationale  Accelerate the approval process and gain a larger volume of mortgage financing through CEF for the buyers of Goldfarb units.  Better cash flow for Goldfarb.  Creation of a credit approval unit managed by Goldfarb linked to the CEF’s internal system, dedicated exclusively to Goldfarb’s clients; the unit’s favorable opinion will be valid for the other areas of the CEF.  Consolidate Goldfarb as the largest operator of Crédito Associativo of CEF. 2
  3. 3. Letter of Intent Goldfarb x CEF  The partnership will enable Goldfarb to act as negotiating correspondent for CEF with homebuyers and borrowers. Moreover, all operational and administrative tasks related to customers’ credit approval process will be centralized in the company’s internal team.  Pursuant to the policy of rewarding good payers, clients with a proven payment capacity of a given amount over 12 months will receive automatic approval for a monthly mortgage credit of up to 130% of the proven amount.  Through this partnership, CEF expects to finance 12,000 residential units for Goldfarb customers each year, for a total of R$1.2 billion in mortgage loans.  Today, Goldfarb is one of the largest operators of group credit offered by CEF. According to CEF data, Goldfarb has already delivered more than 32,000 residential units. This year Goldfarb more than tripled its launches to 8,100 units, from 2,600 in 2006. 3
  4. 4. Constant Deal Flow At capital markets, operational and corporate finance levels Capital Markets / Inv. Credit Suisse Deutsche Bank Real Estate road trip Conference (NY) UBS Conference Non Deal Road One on one UBS São Paulo Show (NY) Conference Follow-On London R$ 575 mm Relation IPO Initiating Coverage Debentures Santander R$ 432 mm R$ 250 mm Real Estate road trip Banco Brascan Non Deal Boston NY and Toronto UBS CEO IPO Conference R$ 304 mm Initiating Coverage Initiating coverage Initiating Coverage (debenture) Operational 4Q06 1Q07 2Q07 Launches: 16 projects Launches: 14 projects Launches: 21 projects Sales pro rata: R$82 mm Sales pro rata: R$78 mm Sales pro rata: R$224 mm GSV pro rata: R$ 159mm GSV pro rata: : R$ 144mm GSV pro rata : R$ 231mm Acq. of 20% (+30% option) Acquisition Pipeline Acq. of 21% Joint Venture Geographic Goldfarb and Expansion to Acq. of 14.5%2 CHL JV Midwest and Joint Venture JV Northen States Acq. of 20% Joint Venture Acq. of 5% (+20% option) JV Acq. of 5% Acq. of 40% Acq. of 10% Sale of 20% Acq. of 30% (+5% option) 36.9%1 Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07 Oct -07 Nov -07 Dez -07 Notes: 1 25% directly and 11.9% indirectly through Lindencorp 4 2 Subject to further changes after new acquisitions
  5. 5. Final Comments Exposure to the Low Income  Low Income Pro rata PSV in the Landbank amounts to R$ 3,5 billion Segment with over 42 k units  Expertise and capacity to invest in: – Geographic regions Diversification – Market – Income class segments Leverage on Partnership  Ability to “hire” the best management in the industry and leverage on their specific and local knowledge Philosophy Additional capital gain  Potential capital gains through its portfolio investments potential  Management with strong real estate expertise, financial background Management expertise and return oriented culture to implement PDG Realty´s business strategy  The right platform to accomplish a sustainable long term growth  Unique business model in the Brazilian real estate market 5