Presentation - Habiarte Barc Agreement

PDG Realty signs co-development agreement with Habiarte Barc

Agreement RationaleAgreement Rationale

Allow PDG Realty’s entrance yet into another market spreading our capillarity and geographicAllow PDG Realty s entrance yet into another market, spreading our capillarity and geographic

diversification.

Capture the potential swell in the real estate market of the Northeast of São Paulo state. The region isp p g

focused in agribusiness and has above national average per capita income.

Partnership with construction and development company with management team of effective technical

capacity and performance execution.

Leverage PDG Realty’s result.

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PDG Realty & PDG Realty & HabiarteHabiarte BarcBarc CoCo--development agreementdevelopment agreement

Habiarte Barc has over 22 years of experience and has consolidated itself as one of the topHabiarte Barc has over 22 years of experience and has consolidated itself as one of the top

developers and construction companies in Ribeirão Preto, developing mid to mid high

residential and commercial projects, totaling more than 30 projects and 1,300 units since

its foundation.

The executives of Habiarte Barc where co-responsible for great part of the recent

developments in new areas of Ribeirão Preto.

The joint venture will lead to the development of mid income residential and commercial

projects, with a contracted pipeline of 4 projects that together amount a pro rata PSV for

PDG Realty of R$140 million From this total approximately R$100 million will be launchedPDG Realty of R$140 million. From this total, approximately R$100 million will be launched

in 2008.

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PDG Realty & PDG Realty & HabiarteHabiarte BarcBarc CoCo--development agreementdevelopment agreement

Ribeirão Preto is located in the Northeast region of the São Paulo state and today is the

world´s largest producer of sugar and ethanol and has consolidates itself as one of the

largest exponents of Brazil´s agribusiness.

The region is one of the centers of generation of technology and qualified labor in Brazil.

The city is located at 313 km of the state´s capital with a population of over 550 thousandThe city is located at 313 km of the state s capital, with a population of over 550 thousand

residents and is the center of a administrative region composed of 25 municipalities and

1.2 million residents.

Besides being a frontrunner in the Brazilian agribusiness sector, the region has a relevant

presence in other industry sectors: in the medical and orthodontic and pharmaceutical

equipment sector, footwear industry in Franca, the metal-mechanical sector in Sertãozinho

M tã A Sã C lMatão, Araraquara e São Carlos.

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GeographicGeographic ExpansionExpansion

PDG Realty geographic presence covers 12 states and 44 cities, as shown in the map below (geographic

distribution of pro rata PSV in PDG Realty’s land bank):

Bahia: 2,2%

JV

Minas Gerais: 4,4%

Espírito Santo: 4,2%

Rio de Janeiro : 19,8%Goias, Pará, Mato Grosso, Mato Grosso do

São Paulo (capital): 19,2%

Sul and District Capital: under prospection

São Paulo (other cities): 47,1%

5Paraná and Santa Catarina: 3,1%

CorporateCorporate StructureStructure

At capital markets, operational and corporate finance levels:

Mar

kets

/ In

v.

latio

n

Non Deal Road Show (NY)

Initiating Coverage

UBS Conference São Paulo

One on one UBS Conference

London

Credit Suisse Real Estate road trip

Santander Real Estate road trip

Deutsche Bank Conference (NY)

Banco Brascan Non Deal

IPOR$ 432 mm

DebenturesR$ 250 mm

Follow-OnR$ 575 mm

IPOR$ 304

CEO Conference

CITI Coverage

Cap

ital M Re

l

Boston NY and Toronto

Initiating Coverage Initiating CoverageInitiating coverage

(debenture)

UBS CEO Conference

R$ 304 mm

Initiating Coverage Initiating Coverage

Ope

ratio

nal

4Q06

Launches: 16 projectsGSV pro rata: R$ 159mm

1Q07

Launches: 14 projectsGSV pro rata: : R$ 144mm

2Q07

Launches: 21 projectsGSV pro rata : R$ 231mm

4Q07


3Q07


n Pi

pelin

e

Joint VentureAcq. of 21%

Acq. of 14.5%2

J i t V t

Goldfarb and CHL JV

Acq. of 20% (+30% option)

Geographic

Acq

uisi

tion

Acq. of 10%

Acq. of 20%

Sale of 20%Acq. of 5%

(+5% option)Acq. of 30%

Joint Venture

Acq. of 40%

Joint Venture

JV 36.9%1

JVAcq. of 5%

(+20% option)

Geographic Expansion to Midwest and

Northen StatesHabiarte

Agreenment

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Feb-07 Apr-07 Jun-07 Aug-07Jul-07 Sep-07Jan-07 Mar-07 May-07 Oct -07

Notes:1 25% directly and 11.9% indirectly through Lindencorp

2 Subject to further changes

Nov -07 Dec -07 Mar-08

ContactsContacts

For any additional information, please contact :

Michel Wurman - CFO and Investor Relations Officer

João Mallet, CFA - Investor Relations Manager

Gustavo Janer – Financial and Investor Relations analyst

IR Team: [email protected]

Phone: + 5521 3504-3800Phone: + 5521 3504 3800

www.pdgrealty.com.br

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Business

Presentation - Habiarte Barc Agreement