1. PDG R lt enters the Argentinean real
Realty t th A ti l
estate market through stake acquisition
in
i TGLT
Investor Relations:
Michel W
Mi h l Wurman
CFO and IRO
João Mallet
Financial and IR Manager
Gustavo Janer
Financial and IR Analyst
y
Telephone: +55 (21) 3504-3800
1
E-mail: ri@pdgrealty.com.br
Website: www.pdgrealty.com.br/ir

2. Agenda
Acquisition Rationale
TGLT Company Profile
Appendix
Appendi
2

3. Acquisition Rationale
Enter into the Argentine market with a dynamic, entrepreneurial and professional partner, who
can be one of the leaders in the transformation of the development industry in the country.
Create a strong partnership that can eventually expand to other Latin American markets.
Accumulate land bank through attractive deals.
Continue its strategy of investment diversification through partnerships with major market
players.
Deal St
D l Structure:
t
– PDG Realty has invested USD 7 million in TGLT S.A., acquiring a 30% stake in the
company
– In the case of additional sourcing for new developments, PDG Realty has the right (but is
not obliged) to act as a co – investor for up to 100% of the required investment amount.
3

4. TGLT Company Profile: Opportunity
There is a highly attractive opportunity to lead the transformation of the residential
development market of Argentina:
– Argentina has demonstrated resiliency to overcome its worst crisis ever. The
economy has been growing at high rates for the last 4 years with the real estate
sector in the frontline of this recovery.
– With barely any mortgages available to finance acquisition of property, less than 3%
of the market h
fh k has access to new h homes. ThThrough the appearance of mortgages
hh f
demand for new homes will increase significantly.
– Argentina is set to follow the path that Brazil and Mexico’s real estate markets
followed less than a decade ago.
– There are few development companies in Argentina that are prepared to lead this
process with access to capital markets and institutional investors.
4

5. TGLT Company Profile: Investment Strategy
TGLT aims at becoming the leading residential development company in Argentina
based on sales, profitability and quality of the products. The strategy consists in:
sales products
– Developing large residential projects in main cities of Argentina – mostly Buenos
Aires, Rosario, Cordoba and Mendoza, with after-tax margins ranging from 18%
to 27%, depending on th market segment.
t 27% d di the kt t
– As mortgages permeate to the lower income brackets, developing projects for all
market segments.
– Securing a land bank equivalent to 3 years of development.
– TGLT will seek to fund as much as possible of the investments with funds from its
p
shareholders or debt. Whatever portion TGLT is unable or unwilling to fund, it will
use co-investments from PDG Realty or any other partner for development
projects and land banking.
5

6. TGLT Company Profile: The Company
TGLT is a real estate company that has been successfully investing in Argentina since
2002:
– TGLT h has a tteam of professionals th t f t
f f i l that foster creativity, t
ti it transparency and d
integration with strategic partners. TGLT has been able to attract the most
talented professionals in the market, most of who have either been trained in the
US or have master’s degrees in real estate.
g
– The company controls all the steps of the development process. It has developed
a collaboration model with key partners (construction management companies,
brokers, designers, constructors,
brokers designers constructors vendors and advisors) which allows TGLT to
grow fast with proven methodologies.
6

7. TGLT Company Profile: The Company
– Founding partner is Federico Weil (BS, MS in Industrial Engineering - University
of Buenos Aires / MBA – Wharton). He has been investing in Argentina for the
last 7 years, generating annual returns of over 100% for foreign institutional
investors.
investors
– Federico Weil began investing in real estate in early 2002, a few weeks after the
crisis, when he structured with other partners the acquisition of Pecom
Agropecuaria (now Adeco) backed by Soros a company owning 85 000 hectares
Soros, 85,000
of premium farmland in Argentina. Adeco is now one of the largest and most
successful farmland operators in the country.
– Prior to its partnership with PDG Realty, TGLT has been developing Forum Buenos
Aires (www.forumbuenosaires.com), a 47,000 m2 of residential project in dock
IV of Puerto Madero, Buenos Aires. The project – 80% sold - will be completed in
April 2008.
p
7

8. TGLT Company Profile: Pipeline
TGLT and PDG Realty recently acquired from the Bemberg Group a site in Rosario, on
the banks of the Paraná river:
– Th property i l
The t is located i P
t d in Puerto N t a re-developed area only 5 minutes away
t Norte, d l d l it
from downtown Rosario, that resembles Puerto Madero (most prominent newly
developed real estate area in Buenos Aires).
– The development (43,000 m2 of usable area) will be a mixed-use project,
including residences, a hotel, office space, retail and cultural areas and a marina.
– The site – formerly a beer factory built in 1908 – will have 7 buildings (3 of them
y y g(
to be recycled).
– Estimated PSV is USD 60 million, launching is expected for 1H08.
In 2008 TGLT is expected to launch 3 other large projects in Argentina, all under
negotiation or approval process.
8

9. Appendix: Argentinean Real Estate Market
Demographics:
– Argentina, with almost 40 million people, is the third largest country in Latin
America.
– Argentina is an urbanized country with almost 90% of the population living in
urban centers.
– Greater Buenos Aires – with more than 13 million people - is the 8th largest city
in the World and the 3rd largest city in Latin America.
– Half of the population lives in large urban centers, mostly in Greater Buenos
Aires, C d b R
Ai Cordoba, Rosario and M d
i d Mendoza.
9

10. Appendix: Argentinean Real Estate Market
Residential Products:
– In the City of Buenos Aires, 80% of the population lives in multi-family condos
and 20% in single-family dwellings.
– In Greater Buenos Aires, though gated communities became fashionable over the
last 15 years, most of the population lives in single-family units and some multi -
family near each district's commercial center.
– In other major cities, the distribution between single and multi-family is about
even.
10

11. Appendix: Argentinean Real Estate Market
Consumer Behavior:
– Argentina has a young, urban population which, despite its preference for home
ownership over rentals, has been unable to buy homes over the last decade,
leaving a significant pent-up demand which should be reverted as household
pent up
income recuperates:
– Argentines have a high propensity to save in real estate. People invest in real
estate as a value preservation tool (mainly for their own residencies) or for rental
income (buying properties for rent)
– Given how fast real estate recuperated its dollar value after the last crisis,
property is regarded as a low risk investment.
– There is a low propensity to save in financial assets such as stocks and bonds.
11

12. Appendix 2: TGLT Business Model
TGLT’S Business Model:
SUB
CONTRACTORS
GENERAL
CONTRACTOR
BROKERS CONSTRUCTION
CONTRACTORS
ARCHITECTS MANAGEMENT
BUSINESS
PROCUREMENT
CONSTRUCTION
GRAPHIC LOCAL
DEVELOPMENT
DESIGN TAX
INTL.
MARKETING ADMIN
PRESS
TAX
ACCOUNTING
PRODUCT FINANCIAL
ADVERTISING
SALES SUPPORT
DESIGN PLANNING
HEAD
ARCHITECTS
BROKER
INSTALLATION
BROKERS
ENGINEERS
12

13. Appendix 3: PDG Realty´s timeline
PDG Realty´s track record proves its ability to continuously originate co-developments and private
equity opportunities
it t iti
Additional
acquisition
JV JV of 21%
Joint Venture
Set-06
JV
PDG & Abaurre
Acquisition
of 20% stake
Private Acquisition of
Acquisition of
Equity... 30% stake
Joint Venture
40% stake CHL & PIAL
JV
Additional
acquisition
Feb-06
of 10% Sale of
JV April-07 20% stake
Feb-07
Nov-06
May-06
August-07
June-07
R$ 250 mm
44 projects launched 21 projects launched
Debenture
14 projects launched
Founding 2003 -2006 2Q07 issuance
1Q07
2003
IPO
...and co-development
investments.
Jan-07
13

14. Appendix 4: Portfolio Investments
Even in a competitive environment PDG Realty was able to make important acquisitions in accretive
deals
Current portfolio enables strong presence in all market segments:
Rental Income
Mid to Low Income Mid to high income Services
Land parceling
Properties
Part.: 70%
Part: 17% Part.: 50% of a joint venture
Focus: São Paulo, Rio de Janeiro
Focus: São Paulo Part : 49%
Focus: São Paulo
and Espirito Santo Part: 17% (indirect)
Focus: São Paulo and Rio de
Focus: São Paulo
Janeiro
Part: 50%
JV
Focus: Rio de Janeiro
Joint Venture
Focus: Rio de Janeiro
Part: 50% of a joint venture
Focus: Bahia
JV
Joint Venture
Focus: Niteroi, RJ
Niteroi
JV
Joint Venture
Focus: Espirito Santo
14
Part: 30%
Focus: Argentina