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Brazil

Brazil. Brazil at a Glance . Brazil. All three major US rating agencies have upgraded Brazil to investment grade status. With reserves close to $200 billion, Brazil has become a net external creditor.

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Brazil

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  1. Brazil

  2. Brazil at a Glance Brazil All three major US rating agencies have upgraded Brazil to investment grade status With reserves close to $200 billion, Brazil has become a net external creditor • After being slightly devalued during the global economic recession, Brazil’s currency has strengthened against the dollar Inflation has remained under control at the targeted ranges of 4-6% Source: The Economist

  3. Major Office Sub-markets - São Paulo Brazil Centro Paulista Jardins Marginal Pinheiros

  4. Major Office Sub-markets - São Paulo Brazil Over 5.7 million square meters of stock in São Paulo’s main office submarkets Source: CB Richard Ellis

  5. Nestlé Building, São Paulo Brazil

  6. Market Statistics - São Paulo Brazil Absorption remains flat Vacancy remains fairly flat Rental rates continue to rise since the economic crisis Source: Cushman & Wakefield

  7. Market Statistics - São Paulo Brazil Despite the global economic recession, Brazil rebounded quickly and resumed new construction With the tightened vacancy rate, rental rates are expected to rise Source: Cushman & Wakefield

  8. Recent Lease Transactions - São Paulo Brazil Source: Capright Property Advisors LLC • E-Tower • Icon Faria Lima • Faria Lima Financial Center

  9. Major Office Sub-markets –Rio de Janeiro Brazil Centro Botafogo Flamengo Barra da Tijuca Zona Sul

  10. Major Office Sub-markets –Rio de Janeiro Brazil Over 2.7 million square meters of stock in Rio de Janeiro’s main office submarkets Source: CB Richard Ellis

  11. Market Statistics–Rio de Janeiro Brazil Rates have increase nearly 30% since the 3Q 2008 Demand for office space has been strong Source: Cushman & Wakefield

  12. Market Statistics–Rio de Janeiro Brazil Net absorption has out-paced delivery of new stock Source: Cushman & Wakefield

  13. Recent Lease Transactions - Rio de Janeiro Brazil Source: Capright Property Advisors LLC • Torre Vargas • Torre Almirante • Ventura Tower I

  14. Office Market Conclusions Brazil Due to the lack of real estate development in the 20 years preceding Brazil’s recent economic recovery, demand continues to outpace supply Fundamental demand for most types of real estate has persisted throughout the global economic recession (construction is back to pre-2008 levels) Due to substantial FDI and the evolving capital markets, the scale of construction continues to increase Rental rates continue to increase

  15. Asset Transactions Brazil • Eldorado Business Tower • Marginal Pinheiros - São Paulo • April 2009 • 33,500 square meters • Sale price: R$ 290 Million / U$S 164.5 Million • R$ 8,657/SM --- U$S 4,492/ SM • Buyer: Brazilian Capital Real Estate Fund I • Seller: São Carlos Empreendimentos • Cap Rate: 12.0% Source: Capright Property Advisors LLC

  16. Asset Transactions Brazil • Torre Almirante • Centro - Rio de Janeiro • March 2009 • 41,649 square meters • Sale price: R$ 404 Million / U$S 229 Million • R$ 9,697 / SM ---- U$S 5,501 / SM • Buyer: Brazilian Capital Real Estate Fund II • Seller: Hines • Cap Rate: 12.0% Source: Capright Property Advisors LLC

  17. Asset Transactions Brazil • Nestlé Building • Marginal Pinheiros - São Paulo • June 2007 • 38,000 square meters • Sale price: R$300 million • U$S 170 Million • R$ 7,895 /SM --- U$S 4,479 / SM • Buyer: Hines/CalPERS • Seller: BancoItau • Cap Rate: 9.5% Source: Capright Property Advisors LLC

  18. Challenges Brazil Absolute necessity to work with local companies due to cultural differences Due to the strong influx of foreign capital, competition for projects has increased Finding available land in key markets

  19. Other Opportunities Brazil Brazil is currently short 6 to 8 million housing units, according to government reports Residential developments in the greater Sao Paulo market have been receiving high leveraged returns at the project level on equity investments - 2 to 3 year hold period Rising wealth of the middle class has increased demand for office space, retail outlets, residential space, hotels, and manufacturing facilities Source: Capright Property Investors

  20. Other Opportunities Brazil In little more than a decade, the number of major shopping centers went from 150 to 400 • More than 200 million shoppers frequent the malls each month • 54,000 satellite and anchor stores • 1,300 theaters 400 shopping centers, or one for every 500,000 United States has 90,000 or one per every 3,300 people Brazil is still vastly undersupplied with retail space Source: National Real Estate Investor

  21. Other Opportunities Brazil Industrial / Warehouse Commercial Buildings Mixed-Use Projects

  22. Thank You Anthony DiBiaseNove International LLC1006 S. Michigan Ave, Suite 225Chicago, IL 60605+1 708 462 2010

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