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Strategy



Pursuing its goal of leading the industry in the various markets and regions where it operates, Camargo Corrêa Desenvolvimento Imobiliário (CCDI) invests in commercial and financial strategies that maximize the profitability of its shareholders and provide it with competitive advantages.

See each one of them:

+ Strong growth potential

CCDI intends to continue growing at a fast pace in the upcoming years, based on: its reputation; the high quality of its projects; its organizational structure; the company's solid financial situation; its access to the best opportunities to acquire land; and its ability to obtain financing at attractive rates. Despite being completely independent, the company benefits from the credibility and strength of the Camargo Corrêa brand that provides it with economies of scale and competitive advantages. The availability of financing at attractive rates, lower interest rates and the significant shortage of residential real estate in Brazil represent an excellent opportunity for expanding CCDI’s business. The company's competitive advantages ensure growth and will strengthen its leadership in the residential and commercial segments in the upcoming years.

+ Maintenance of operational flexibility

CCDI intends to remain flexible in order to adapt its products to different types of demand and operate in various segments to take advantage of the best business opportunities. All of the company’s projects give serious consideration to the social and demographic potential and the number of potential clients in the region, as well as taking local preferences into account and offering competitive prices. CCDI seeks to grow with attractive margins in all its markets.

 

+ Geographic expansion

In addition to continuous growth in the states of São Paulo and Rio de Janeiro, CCDI is expanding its operations into other regions of the country. This strategy allows the company to operate in real estate markets with attractive development potential while diversifying its risk profile.

 

+ Acquisition of land and development of new properties

In order to accelerate the development of residential and commercial properties, CCDI acquires land in strategic locations and creates partnerships with regional developers located outside the São Paulo and Rio de Janeiro metropolitan areas. As a matter of strategy, an average of 85% of the acquisitions are carried out as swaps.

 

+ Maintaining a comfortable financial situation and promoting growth

CCDI maintains its financial position and optimizes its capital structure to increase returns for shareholders. The company plans to advance growth by opening lines of credit at financial institutions and onlending of customer receivables to finance agents.

 

+ Reducing costs and maximizing operating efficiency

CCDI believes that it is essential to minimize operating costs to maintain competitive margins and ensure profitability. In order to achieve this goal, CCDI will continue to positively exploit its synergy with the Camargo Corrêa Group. In addition to reducing costs, the strategy also increases the efficiency of CCDI operations.

 


Competitive Advantages

Following the Company’s strategy, Camargo Corrêa Desenvolvimento Imobiliário has created competitive advantages that puts the Company in leading position in the brazilian real estate sector. Learn more about the advantages:

Raízes da Mata
built in October 2007
+ High quality projects in carefully selected sites at competitive prices.

CCDI is committed to developing premium projects, with a focus on superior design and quality construction. The Company engages leading architects, construction companies and sales brokers and closely monitors every stage of each project’s development. CCDI conducts extensive market research to guide its land acquisition strategy and to define the most appropriate project for a specific site. When selecting a site, the Company also evaluates numerous other factors, including the demographics of prospective clients and the existing inventory of units in the vicinity. CCDI believes that the location and quality of its projects, combined with its competitive pricing, have enabled the Company to rapidly sell its inventory.

 

+ Strong reputation and brand recognition.

CCDI believes that the “Camargo Corrêa” name is of great value to its business. The Camargo Corrêa Group is a large, well-known, financially solid Brazilian industrial conglomerate. As a consequence, the Company has a strong reputation among the various parties involved in the Brazilian real estate industry, including existing and potential clients, landowners, brokers, lenders, construction firms and existing and potential joint venture partners. CCDI believes that the Camargo Corrêa Group’s reputation for conservative financial management, transparency and its excellence in the construction industry gives it credibility with property buyers and access to attractive financing. CCDI also believes that Camargo Corrêa’s national name recognition will help it expand into other regions outside the São Paulo and Rio de Janeiro metropolitan areas. In addition, the Camargo Corrêa Group’s activities throughout Brazil enable it to identify potential opportunities for CCDI to acquire land to develop new projects as well as identify potential joint venture partners.

 

+ Strategic land reserves in premium locations..

CCDI’s investment expertise, development capability and strong name recognition in Brazil have allowed the Company to obtain large and strategically located land reserves. CCDI’s diverse land portfolio located in prime locations is an important factor in its launch of successful real estate projects. The Company believes that its strategic land reserves, particularly its land reserves in the São Paulo metropolitan area, will enable it to continue to grow and increase its leading position in the Brazilian residential and commercial real estate markets.

 

+ Access to attractive financing.

Obtaining financing on attractive terms and efficient cash flow management are critical for successful operations in the real estate development business. As part of the Camargo Corrêa Group, CCDI has access to funding from top-tier financial institutions on favorable conditions. The Company also participates in joint ventures with other developers, investors and land owners, which CCDI believes broadens its access to other funding sources.

 

+ Experienced and professional management team.

The Company has a professional and committed senior management team that is highly skilled and experienced in the Brazilian real estate industry. CCDI benefits from the reputation of the Camargo Corrêa Group in helping to attract, train and retain top quality professionals. Because the Company believes that its future growth is directly related to its ability to continue to attract and retain qualified professionals, CCDI invests significant resources in selecting and rewarding employees as they contribute to its entrepreneurial and results-oriented corporate culture.

 

+ Financial discipline and results-oriented approach.

CCDI has a systematic, results-oriented approach for analyzing new projects and are able to respond quickly when presented with business opportunities. Its management is focused on maintaining its strong financial position and carefully analyzes cash flow projections when considering the viability of each new project. The Company is also focused on carefully monitoring and controlling costs. The Company currently shares certain back-office and human resources systems and functions with other companies within the Camargo Corrêa Group, which allows it to minimize operating costs. The Company believes that its access to the Camargo Corrêa Group’s advanced back-office systems and significant capabilities enable it to rapidly and reliably increase the scale of its operations with minimal capital investment. In addition, as part of the Camargo Corrêa Group, CCDI was able to benefit from volume discounts and the ability to purchase certain supplies and services at more competitive prices than otherwise would be available to the Company.

 

+ Strong shareholder sponsorship and corporate governance practices.

CCDI benefits from the financial strength of its parent company, which is the holding company of the Camargo Corrêa Group, a diversified Brazilian industrial conglomerate with market-leading companies in various sectors, with more than 67 years of existence. The Camargo Corrêa Group, which includes several publicly traded companies in Brazil, has well-established corporate governance practices ingrained in its culture. These practices serve as a solid base for its corporate governance practices. CCDI has joined the Novo Mercado of the Bovespa. The Novo Mercado has the highest applicable corporate governance standards for listed companies in Brazil. The Company believes that the sponsorship and support of its controlling shareholder, coupled with its enhanced corporate governance practices, will contribute to its good reputation and to the consolidation of its position as one of the leading companies in the real estate development sector in Brazil.

 

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Updated on 6/23/2008



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