Date post: | 07-Jul-2015 |
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Economy & Finance |
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PDG Realty signs joint venture with Grupo LN for Paraná and Santa
Catarina marketsInvestors Relations:
Michel Wurman Investors Relations Director
João MalletInvestors Relations Manager
Gustavo JanerIR Analyst
Telephone: +55 (21) 3504 3800E-mail: [email protected]
Website: www.pdgrealty.com.br/ir
Joint Venture between PDG Realty & GrupoLN
Grupo LN is one of the largest construction companies in Paraná and Santa Catarina.
Founded more than 20 years ago, the company has launched over 2,500 residential units and has today 5 projects under constructions.
The joint venture foresees that, within the market of Paraná and Santa Catarina, all of the projects prospected by one partner must be presented to the other. Grupo LN will held a 30% to 50% stake in each project.
Prospect of projects development in the VGV amount of R$100 million (pro-rata PDG Realty) year on year starting in 2008.
The partnership will target from mid-high to mid-low income segments and in this last segment Goldfarb will be responsible for the construction.
The joint venture has already 3 pre approved projects, with the first launch taking place in the 1Q08.
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Partnership Rationale
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Allow PDG Realty’s entrance yet into another market, spreading our capillarity and geographic diversification.
Capture the potential swell in the real state market of Paraná and Santa Catarina.
Partnership with a company of an effective technical capacity and performance execution.
Leverage PDG Realty’s result.
Successful track record
PDG Realty´s track record proves its ability to continuously originate co-developments and private equity opportunities.
44 projects launched2003 -2006
Jan-07
IPO
Private Equity...
...and co-developmentinvestments.
14 projects launched1Q07
Feb-06Additional acquisition
of 10%
Acquisitionof 20% stake
May-06
Set-06JVJV
Nov-06JVJV
Feb-07
Acquisition of 40% stake
JVJV
April-07
Additional acquisition
of 21%
June-07
Sale of20% stake
Joint VentureCHL & PIAL
JVJV
Joint VenturePDG & Abaurre
JVJV
R$ 250 mm Debentureissuance
21 projects launched2Q07
August-07
Acquisition of 30% stake
July - 07
Acquisition of 14,5% stake
Set - 07
Additional acquisition
of 5%
Joint Venture PDG Realty & LN
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Geographic Expansion
Following its strategy of geographic and market segmentation, PDG Realty is present in 31 cities distributed in 6 diferent states.Additionaly, PDG Realty has recently acquired a 30% stake in TGLT S.A, a argentinean real estate developer with projects in the cities of Buenos Aires and Rosário.
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Bahia:• Salvador
Espírito Santo:• Serra• Cariacica
Rio de Janeiro:• Rio de Janeiro• Niterói
São Paulo:• Araçatuba•Atibaia•Bragança Paulista•Cajamar•Campinas•Cotia•Guarujá•Guarulhos•Itapevi•Itu•Itupeva•Jandira•Jundiaí
•Mogi Cruzes•Paulínia•Ribeirão Preto•S.Caetano•Santo Andre•Santos•São Bernardo•São Jose dos Campos•São Paulo•Sumaré•Votorantim
Paraná:•Curitiba
Santa Catarina:•Florianópolis (*)
(*) under analysis
Portfolio Investments
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Even in a competitive environment PDG Realty was able to make important acquisitions in accretive deals.
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Part.: 75%Focus: São Paulo, Rio de Janeiro and Espirito Santo
Part: 17%Focus: São Paulo Part: 17% (indirect)
Focus: São Paulo
Part.: 50% of a joint ventureFocus: São Paulo
Part: 50%Focus: Rio de Janeiro
Mid to low incomeMid to low income Mid to high incomeMid to high income Land parcelingLand parceling Rental Income Rental Income PropertiesProperties ServicesServices
Part: 50% of a joint ventureFocus: Bahia
Joint VentureFocus: Rio de Janeiro
JVJV
JVJV
Joint VentureFocus: Espirito Santo
JVJVJoint VentureFocus: Niteroi, RJ
Part: 30%Focus: Argentina
Part: approx. 14,5%Focus: São Paulo, Rio de Janeiro, Bahia, Minas Geraisand Rio Grande do Norte
Joint VentureFocus: Paraná e Santa Catarina
Closing Remarks
Diversification
Expertise and capacity to invest in different:– Geographic regions– Markets – Income segments
Flexibility Flexibility to capture a large range of investment opportunities and market trends
Management expertiseManagement with strong real estate expertise, financial background and return oriented culture to implement PDG Realty´s business strategy
Additional capital gain potential
Capital gain potential from portfolio investments since PDG will help its invested companies to grow and access equity capital
Count on the best management teams in
the industry
Ability to “hire” the best management in the industry and leverage on their specific and local knowledge
The right platform to accomplish a sustainable long term growth
Unique business model in the Brazilian real estate market 7