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Presentation – joint venture with CHL and Goldfarb

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Presentation – joint venture with CHL and Goldfarb

  1. 1. PDG Realty announces Joint Venture between Goldfarb and CHL for the Rio de Janeiro State Investors Relations: Michel Wurman Investors Relations Director João Mallet Investors Relations Manager Gustavo Janer IR Analyst Telephone: +55 (21) 3504-3800 E-mail: ri@pdgrealty.com.br Website: www.pdgrealty.com.br/ir 1
  2. 2. Agenda Joint Venture Rationale Pipeline PDG Realty Business Model 2
  3. 3. Joint Venture Rationale Joint Venture to consolidate PDG Realty as the leader in launches in the low income segment within the state of Rio de Janeiro. CHL enters the low income segment with a partner with proven execution capacity in the segment. Synergy creation between two companies who are leaders in their markets . All CHL launches in the super low income segment (units under R$ 140 thousand) will be developed through the Goldfarb joint venture. Reaffirm and reiterate the strategic alignment between the current shareholders of both companies and PDG Realty. 3
  4. 4. Pipeline The CHL and Goldfarb Joint Venture for the Rio de Janeiro state has already a significant pipeline: – 5 projects totaling R$ 326 million of PSV, with the pro rata PSV for PDG Realty of R$ 225 million – Approximately 3 thousand units distributed in 150 thousand m2 A i l h d i di ib di h d 2 – 3 projects are already expected to be launched in the 1st half of 2008. The Th companies expect to launch approximately 2-4 th i tt l h i t l 2 4 thousand low income units yearly dl i it l starting in 2008. CHL will be responsible for the research of new business and landbank acquisition, while Goldfarb will be responsible for the construction and management of the developments. Each company will hold a 50% stake in all new developments. 4
  5. 5. Corporate Structure At capital markets, operational and corporate finance levels p , p p arkets / 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 p Capital Ma 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 t GSV pro rata : R$ 231mm Acquisitio Pipeline Goldfarb and CHL JV Acq. of 21% Joint Venture Acq. of 14.5%2 on Joint Venture JV Acq. of 20% f % 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 07 Notes: 1 25% directly and 11.9% indirectly through Lindencorp 2 Subject to further changes after new acquisitions 4
  6. 6. Corporate Strucuture PDG R lt h Realty has b been managing t create new b i i to t businesses b based on th private equity model and d the i t it d l d establish new successful partnerships with companies with proven track record. 6
  7. 7. Business Model Exposure to the Low Income Flexibilidade pararata PSV in the Landbank amounts to R$ 3,5 billion Low Income Pro atuar em todos os segmentos do mercado Segment imobiliário42 k units with over Brasileiro Expertise and capacity to invest in: – Geographic regions Diversification – Market – Income class segments Leverage on Partnership Abilidade “hire”agregar os melhores profissionais do mercado e on Ability to para the best management in the industry and leverage their specific and local knowledge Philosophy alavancar suas abilidades em suas especificas áreas de atuação Additional capital gain Potenciais ganhos de capital através dos seus investimentos de Potential capital gains through its portfolio investments potential portfolio Management with strong real estate expertise, financial background g g p , g Gestão com grande culture to implement PDG Realty´s business and return oriented expertise no setor imobiliário e financeiro com Management expertise forte cultura de maximização de retornos strategy The right platform to accomplish a sustainable long term growth Unique business model in the Brazilian real estate market 7

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