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COMPETITIVE ADVANTAGES

Thanks to its more than 30 years of experience and operations in the Northeast of Brazil, the Company is one of the few developers in Brazil with extensive knowledge of the region’s specific characteristics. The Company believes that success in the real estate market is directly related to knowledge of the region in which the property developer operates and its inhabitants. The Company’s experience and knowledge of the culture and preferences of the public in the Northeast region ensure an advantageous position to develop products that meet the needs of this target audience. This includes facilities, development of up-to-date projects and modern urban concepts, adapted to the region. This allows the Company to anticipate trends and develop products designed for specific market niches, which increases sales speed and profitability.

We believe that the Company’s successful track record and high quality have consolidated its reputation and strengthened its brand with partners and clients. This has become a great competitive advantage, generating new business and facilitating land negotiations and the launch and sale of new projects. In order to attract and retain clients and thus expand its brand, the Company ensures the quality of its projects and services before, during and after unit delivery.

The Company has extensive experience in luxury and high-end buildings, second homes and affordable housing. This diversification gives it the flexibility to develop different types of projects, creating business opportunities and enabling faster adaptation to changing market needs. As a result, the Company is in a privileged position to take advantage of business opportunities by using its land to meet the market demand for specific products, minimizing risk in its project portfolio and increasing profitability.

The Company builds all the projects it develops. It identifies, assesses and buys land; plans and designs the project, making sure it is well suited for real estate projects; obtains approvals, licenses and permits; develops and builds properties and coordinates sales; meets client demands before, during and after unit delivery. This enables the Company to maintain strict quality control of all stages of development and construction, from the acquisition of the land to the delivery of the units. This strict quality control enabled the Company to obtain ISO 9001/2000 (Quality System), OHSAS 18001/1999 (Occupational Health and Safety Management System) and ISO 14001/2004 (Environmental Management System) international certifications. Competence in integrated management of all stages of the development and construction process brings several benefits for the Company: strengthening the brand, consumer recognition; recognition as synonymous with quality; efficiency and cost control, lower project costs due to savings generated by the integration of activities; increased purchasing power with suppliers, resulting in economies of scale; and control of delivery times.

The Company’s management has extensive experience in and knowledge of the real estate sector. Its founding shareholders, all of whom are members of the Board of Directors, actively participate in the Company’s day-to-day activities. In addition, the main executives have been in the Company for more than 15 years, on average. The Company’s culture is focused on results and the development of leaders, an “ownership culture”, in which each project is treated as a business unit. This practice results in greater executive commitment to the success of the projects. The success of this management model is proven, for example, by the fact that a large number of the Company’s engineers started as interns. A team with different real estate backgrounds gives the Company the flexibility to develop different types of projects, creating business opportunities and allowing it to operate in different segments of the real estate sector.

Strategy

The Company’s strategy is aimed at increasing consolidation in the Northeast region, among other objectives. The Company aims to use most of the proceeds from its IPO to amortize debt. In line with its growth and consolidation strategy, the Company intends to accelerate new launches and the land acquisition process to generate cash and attractive profit margins. Its knowledge of the five markets in which the Company operates and the proximity between them are the foundation for its growth. Its recognition in the states of the Northeast region where it operates, its extensive experience and its solid reputation underpin the continuation of this strategy.

The acquisition of land is the most critical phase of the development process, due to the impact on the Company’s capital exposure. The Company thoroughly analyzes each acquisition using a consistent process and methodology developed over the years, which includes an extensive audit designed to obtain the legal and environmental security necessary for each project. The Company also conducts studies on the financial feasibility of the project and product development. Quantitative and qualitative research of the region is also carried out by specialized institutes – they analyze demand in the specific area and its market characteristics, such as the income, occupation profile and competing products in the region. The market studies are conducted in partnership with companies specialized in sales and launches. Priority is given to segments that provide higher returns.

The Company’s policy on land acquisition and the establishment of a land bank is based on economic and financial factors, constantly seeking to reduce the carrying cost of land. Thus, it prioritizes a better return on invested capital. To this end, the Company works intensively to ensure the period between the acquisition of the land and the launch of the corresponding project is as short as possible, based on market conditions.

The Company seeks to maintain and increase its flexibility to operate in several segments, especially luxury, high- and medium-end buildings, affordable housing and second homes. Its expertise in property development and construction in various segments allows it to quickly adjust its operations, seeking projects with the greatest demand. This diversification of operations creates business opportunities, dilutes risk and increases revenue.

The Company also intends to increase its performance as a provider of construction services for third-party real estate projects (gated communities). In addition to being a source of revenue diversification, its expertise in real estate development and construction in various market segments qualifies the Company as a service provider in this category.