We believe that investment in real estate is an important part of a diversified portfolio of assets. Combined with other businesses with stable cash generation, real estate serves our organization many purposes that complement and supplement our overall business strategy.

Our properties are mostly centrally located in metropolitan area. Albeit having more than 2,2 million square meters in land, this impressive landbank is indeed all within metro areas in Southeast Brazil. We would rather invest in metropolitan areas than more distant rural areas to achieve a shorter appreciation of our landbank value.

More often our combined assets are larger areas more than 400,000 square meters each, in most part of our exclusive ownership. Complementarily we do integrate investment groups that jointly purchase real estate and that part of our assets represents about 10% of our portfolio. Another 10% in value would correspond to apartments, houses and fully developed smaller lots for housing on already developed projects.

Our landbank philosophy is to deposit the land in certain business that may serve one or more of the other 4 Business Areas in Westhon, although we have not yet executed such strategy which is part of the 2017-2023 business plan for the lack of a perfect fit.

As the land is totally free of debt and under our control, we consider depositing the area by meand of debt raising, guarantee for equity and other funding as well as development of the areas on their own.