2. 2
Disclaimer
► The material that follows is a presentation of general background information about BR Properties S.A. and its subsidiaries (“BR
Properties” or “BRP” or the “Company”) prepared as of the date of the presentation by BR Properties.
► This information is in summary form and does not purport to be complete. It is not intended to be relied upon as advice to potential
investors. Information contained in this material has not been independently verified. Certain information has been obtained from
public sources. Information not obtained from public sources and contained herein was prepared solely based on information
provided by the Company. No representation or warranty, either express or implied, is made concerning, and no reliance should be
placed on, the accuracy, fairness, or completeness of the information presented herein. This material has been prepared solely for
informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities and should not be treated
as giving investment advice. It is not targeted to the specific investment objectives, financial situation or particular needs of any
recipient. It is not intended to provide the basis for any third party evaluation of any securities or any offering of them and should not
be considered as a recommendation that any investor should subscribe for or purchase any securities
► Although BR Properties believes that the expectations and assumptions reflected in the forward-looking statements are reasonably
based on information currently available to BRP’s management, BR Properties cannot guarantee future results or events. BR
Properties expressly disclaims a duty to update any of the forward-looking statement.
► Neither this material nor its content shall be deemed to constitute an offer of or an invitation, or solicitation of an offer to subscribe
for or purchase any securities. The information contained herein is subject to change without notice and neither the Company past
performance is not indicative of future results. Neither this presentation nor anything contained herein shall form the basis of any
contract or commitment whatsoever.
► No person is authorized to give any information or to make any representation not contained in and not consistent with this material
and, if given or made, such information or representation must not be relied upon as having been authorized by or on behalf of the
Company.
► These materials are strictly confidential and are being submitted to selected recipients only. They may not be reproduced (in whole
or in part), distributed or transmitted to any other person without the prior written consent of the Company. These materials are not
intended for distribution to, or use by any person or entity in any jurisdiction or country where such distribution or use would be
contrary to local law or regulation.
3. 3
Company Overview
► Largest public commercial properties company in Brazil
► A GP sponsored company, BR Properties was founded in Dec/06
by an experienced team of executives, aiming at acquiring,
managing, developing and leasing high quality commercial
properties in Brazil
► Company’s portfolio currently holds 61 properties, with
approximately 1 million sqm of GLA and estimated market value of
R$ 2.98 billion
► Experienced in-house teams: acquisitions, financing, legal and
engineering
► Market recognition: proven ability to source deals and execute
transactions makes BR Properties the partner of choice for co-
development and built-to-suit operations
► 4 greenfield projects, with approximately 150.4 thousand sq m
of gross leasable area (GLA)
Illustrated Portfolio – Recent AcquisitionsCompany Description
The largest and most complete commercial properties company in Brazil
RB 115
11,344 sqm
DP Louveira 8 & 9
88,643 sqm
Acquisition: Jun/10
Manchete Building
26,439 sqm
Acquisition: Jun/10
4. 4
GLA Breakdown by Type of Property¹ sq m
Portfolio Overview
Market Value of the Portfolio¹ (R$ mm)
36 24 1 61
# of Properties
A top-notch portfolio comprised of office buildings and warehouses, located in the most dynamic
regions of Brazil
Note:
1 As of June, 2010 BR Properties tenant base entails some of the best known Companies
in the country, spanning wide industry diversification
► 150 tenants
Main Tenants Tenant Base Breakdown by Industry
1.655
2.9881.311 22
Escritórios Galpões Redesenvolvimento Total
1,655
1,311 22 2,988
255.810
993.143730.148 7.184
Escritórios Galpões Redesenvolvimento TotalWarehouse Office Warehouse RedevelopmentRedevelopmentOffice
Storaging
Consumer
Goods
Credit Cards
Construction
Consulting
Publishing
Education
Energy
Pharma
Industrial
Financial Inst.Government
Logistics
Media
Tecnology
Telecom
Other
5. 5
A unique vehicle, exposed exclusively to Brazilian commercial real estate, extremely well
positioned to benefit from the bullish fundamentals of the sector in Brazil
1
2
34
5
Favorable
Macro-Economic
Scenario
Attractive Sector
Dynamics
Unique Business Model
Broad Growth Potential:
Natural Industry
Consolidator
World-Class
Sponsorship
and Tier 1
Management Team
Investment Case
6. 6
NTN-B (% aa.) - July 15th 2010
Real GDP Growth (%)
► Lower interest Rates
► Increased credit availability
► Increasing demand for industrial and distribution space
Unemployment Rate (%)¹
Favorable Macro-Economic Conditions 1Q10
Industrial Production Growth (%)¹
1
Growing industrial production and GDP, declining unemployment rates and single-digit interest
rates are fueling sectors exposed to domestic market
Source: Brazilian Central Bank
Note:
1 Adjusted Seasonally
► Emerging middle class► Pent-up demand for commercial properties
2002 2003 2004 2005 2006 2007 2008 2009 2010E
11.9%
12.4%
11.0%
9.7% 9.7%
8.7%
7.9%
6.8%
6.5%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010E 2011E
1.3%
2.7%
1.1%
5.7%
3.2%
4.0%
5.7%
5.1%
-0.2%
6.3%
4.5%
2005 2006 2007 2008 2009 2010E
3.8% 3.8%
6.2%
-17.7%
-5.5%
10.5%
6.2%
4%
5%
6%
7%
8%
9%
10%
11%
12%
Aug-06 Feb-07 Aug-07 Feb-08 Aug-08 Feb-09 Aug-09 Feb-10
7. 7
The potential increase in the nominal interest rate until the end of the year would result in a small
increase in the TR, main index that readjusts our financing contracts
The inflation increase, on the other hand, would have a positive effect on the Company’s results, given
that 100% of our lease contracts are indexed to inflation rates
Our cash reserves are invested exclusively in bank notes indexed to the Brazilian inter-bank rate (CDI),
which would cause an increase in our financial revenues with the forecast increase in the SELIC rate
Effects of the Nominal
Interest Rate Increase
(SELIC vs. TR)
Expected Positive Effects of the Growth
of Inflation Indexes
(TR vs. IPCA vs. BRPR Inflation basket)
Source: Santander research
0,00%
7,95%
0,82% 0,97%
4,31%
5,47%
0,0%
1,0%
2,0%
3,0%
4,0%
5,0%
6,0%
7,0%
8,0%
9,0%
2009 2010e
BRPR Basket of lease contract
inflation readjustment indices
TR
IPCA (CPI)
8,75%
12,00%
0,82% 0,97%
0,0%
2,0%
4,0%
6,0%
8,0%
10,0%
12,0%
14,0%
2009 2010e
Forecast SELIC
TR
Favorable Macro-Economic Conditions 1Q101
8. 8
Rio de JaneiroSão Paulo
Low vacancy combined with steady demand and short supply in the near term allow for solid
growth potential in the commercial properties sector
Attractive Sector Dynamics2
Rental Rate (R$/sq m/month) Vacancy Rate (%) Rental Rate (R$/sq m/month) Vacancy Rate (%)
New Offerings (‘000 sq m) Gross Absorption (‘000 sq m) New Offerings (‘000 sq m) Gross Absorption (‘000 sq m)
Source: CBRE
95
0
30
60
90
120
2005 2006 2007 2008 2009 2010
5.9
0
4
8
12
16
20
2005 2006 2007 2008 2009 2010
123
0
30
60
90
120
150
2005 2006 2007 2008 2009 2010
3.7
0
4
8
12
2005 2006 2007 2008 2009 2010
43
0
50
100
150
200
250
2005 2006 2007 2008 2009 1Q10
148
0
200
400
600
800
2005 2006 2007 2008 2009 1Q10
20
0
50
100
150
2005 2006 2007 2008 2009 1Q10
27
0
40
80
120
160
200
240
2005 2006 2007 2008 2009 1Q10
9. 9
BR Properties benefits from its strong expertise to add value throughout the whole Real Estate
investment chain…
Unique Business Model3
Pro-active
Deal Sourcing
Value Creation
Selective
Developments
Divestment
Lease / Property
Management
Retrofit
Conservative
Use of Leverage
10. 10
613,645 sqm
993,143 sqm
69,8
1.196,2
101,2
151,2
180,0
182,7
94,1
157,0
DP Araucária BBP TNU Jacarandá
Build.
DP Louveira
3,4,5,6
RB 115 DP Louveira
8,9
Manchete
Build.
Total
3 2010 Gross Leasable Area Evolution
Out of 8 acquisitions finalized in 2010, 5 were concluded only three months after IPO
► GLA Acquired: 392,121 sqm
► Acquisitions’ market value: R$1,304 mm
► Amount invested: R$ 1,196 mm
► Concluded Acquisitions: 8
► Concluded Disinvestments: 3
IPO
Jun/10Mar/10Dec/09 Jul/10
► Crescimento do ABL no ano: 62%
► Valor investido após IPO: R$ 873,8 mm
► 2010 GLA Growth: 62%
► Amount invested after IPO: R$ 873.8 mm
260.0
101.2
151.2
180.0
182.7
94.1
157.0
1,196.2
69.8
11. 11
3 Unique Business Model: Successful Cases
Note:
1 CBRE’s independent appraisal, as of December 31st, 2009
ROE*: 147%
Sale Value Addition
Henrique Schaumann
Acquisition Value R$ 41.0 mm
Acquisition Date Nov/07
Re-tenanting R$ 6.5 mm / year (42%
increase on rental income)
Retrofit Elevators/ Façade/Parking
2009 Appraised Value R$ 78.0 mm
Ed. Generali
Acquisition Value R$ 16.6 mm
Acquisition Date Aug/07
Sale Value R$ 21.5 mm
Sale Date Jan/10
Holding Period 29 months
IRR 36%
* Before taxes
16.6
21.5
Acquisiton Value Sale Value
41.0
78.0
26.97
38.10
-
5,00
10,00
15,00
20,00
25,00
30,00
35,00
40,00
45,00
10,0
20,0
30,0
40,0
50,0
60,0
70,0
80,0
90,0
At Acquisition Current
Property Value
Lease/sq m
12. 12
Br Properties
22%
10 Organized
Companies
78%
Fragmented Industry (in terms of GLA – sq m) Stages of Our Acquisition Pipeline Jun/10 (R$ mm)
Ample market fragmentation and lack of professional competitors creates a unique environment
for market consolidators
Broad Growth Potential: Natural Industry Consolidator4
Total Acquisition Pipeline R$3,543R$2,988Current Portfolio
Organized
Companies
8%
Addressable Market: 36.3 mm sq m
Non – Organized
Market
92%
914
515
1.429
1.476
638
2.114
2.390
1.153
3.543
In Negotiation Under Analysis Total Pipeline
Office Industrial Retail Total
13. 13
Management Team Biography
Claudio Bruni
CEO
Mr. Bruni’s whole career was dedicated to real estate development and management. From 1979 to 1989, Mr. Bruni worked for
Multiplan, Brazil’s largest real estate developer, where he was in charge of market research, construction management, commercial
and residential planning, and development. From 1983 to 1985, Mr. Bruni was the Managing Director of Renasce, Brazil’s first
shopping center management company, a joint venture of Multiplan and Brazilian investment bank Bozano, Simonsen.
From 1986 to 1994 Mr. Bruni co-partnered in Visor, a real estate development company dedicated to low income residential
housing, where he helped develop 4,000 residential units, generating revenues of US$128 million.
In 1988, Mr. Bruni founded Deico, Brazil´s largest independent real estate services company, where he was the CEO until
December of 2006. Mr. Bruni served as Executive Vice-President of ABRASCE, Brazil’s shopping center association for 3 years.
Mr. Bruni served as a member of the Retail and Commercial Development Council of the Urban Land Institute.
Claudio Bruni is a civil engineer, with a graduate degree from The Polytechnic School of Engineering at the University of São Paulo
(class of 1978). Industry Experience: 31 Years
Martin Jaco
CIO
Mr. Jaco started his career in Andrade Gutierrez and Metodo Engenharia and joined CB Richard Ellis in 1996 with the objective of
developing the investment consultancy operations of the company in Brazil. Mr. Jaco had direct responsibility and involvement in all
investment activities of the company in the country in the last 10 years, especially in advising investments for institutional investors,
pension funds, property companies and foreign institutions.
Martin Jaco graduated as a civil engineer from the Polytechnic School of Engineering at the University of São Paulo, Brazil, MBA
from the College of Estate Management, Reading University, UK and a Postgraduate Diploma in Project Management from the
Royal Institute of Chartered Surveyors, UK. Industry Experience: 17 Years
Marco Antônio
Cordeiro
COO
Mr. Cordeiro was in charge of construction and project management at Schahin Cury and Metodo Engenharia (general contractors)
for 15 years. While at Deico, Mr. Cordeiro was in charge of planning, market studies, feasibility analysis and appraisals. Mr.
Cordeiro has also been in charge of the consulting division, advising the vast majority of Brazilian pension funds. Mr. Cordeiro has
assisted pension funds in over US$350 million of real estate transactions in the last 2 years.
Marco Cordeiro is a civil engineer, with a graduate degree from the Polytechnic School of Engineering at the University of São
Paulo and specialization at the Business School of Fundação Getúlio Vargas. Industry Experience: 30 Years
Pedro Daltro
CFO
Mr. Daltro started his career in Banco Marka as a Corporate Finance Manager and a Deputy Director. Later, he worked as a VP in
the Credit Risk Management department of Citigroup and Treasurer and Financial Manager in Gafisa, the second largest real estate
developer in Brazil. After Gafisa, he went back to Citigroup as Director of the Public Sector, Infrastructure and Real Estate division.
Pedro Daltro has a bachelor´s degree in Business Administration from Unifacs, Brazil, and MBA from the Owen Graduate School of
Management, Vanderbilt University, U.S. Industry Experience: 16 Years
BR Properties is managed by a team of seasoned professionals, highly motivated and fully aligned
with stockholders through long term stock options plans
5
14. 14
EBITDA (R$ mm) and EBITDA Margin (%)Net Revenues 1Q10 (R$ mm)
Financial Highlights 1Q10
27.281
41.600
52.874
1Q09 1Q10 1Q10 Pro Forma
23.210
35.479
46.753
1Q09 1Q10 1Q10 Pro Forma
85% 85% 88%
16. 16
Strategy Going Forward
► Deployment of the offering proceeds (R$726 million) over the next 9 to 12 months
► Maintain Loan to Value of roughly 50%
► Maintain diversification levels of our current portfolio
► Keep development at a level equal to or below 15% of our portfolio
► Maintain focus on key regions of the country
