PDG Realty Announces Joint Venture Between Goldfarb and CHL for Rio de Janeiro State
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
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.
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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.
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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
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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.
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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
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