Historical Data
Corporate Structure
We develop our real estate development and construction activities directly or through Special Purpose Entities (SPEs), which are used as mechanisms to maximize their activities and results and the purchase and sale of interest in projects.
Companies incorporated as SPEs aim to facilitate the contracting of loans, as they enable the segregation of their equity from the company’s equity through the Affecting Equity, minimizing the risks for the lender. In addition, they are presented as a more efficient mechanism for establishing partnerships, making clear the participation of each partner in the project.
Main sources of revenue
Our revenues come mainly from the development and sale of real estate and, to a lesser extent, from the provision of our own construction services and those for third parties.
Real Estate Development Revenue
The total revenue recognized in the Income Statement (Income Statement for the Year) includes the market value of the units exchanged for the purchase of the land. The same value is considered in the land cost, so, despite the null effect on the result, there may be a significant impact on margin indicators, given the higher denominator for the same result.
Revenue from Service Provision
The revenue from services provided results from administration fees charged on management and construction services for own and third-party projects.
Sales costs and Service Rendered
Our costs arise mainly from real estate development and, to a lesser extent, from the cost of services provided.
Real Estate Development
These are values related to land and construction costs, which include design, foundation, structure and finishing, as well as costs related to a wide variety of raw materials and in-house and outsourced labor.
Among the real estate development costs, the one related to the acquisition of land stands out. It can suffer significant variation due to the characteristics of each area, region and segment of the project to be launched. The forms of acquisition consist of cash payment, barter for units of its present or future projects, financial barter (a portion of the proceeds from the sale of units of the project to be developed on the land), and a combination of any of these forms.
On average, the evolution of construction costs is used as shown in the table below:
| Period of construction (in months) |
Period of construction (in months) |
| 1st to 6th |
15% |
| 7th to 12th |
25% |
| 13th to 18th |
30% |
| 19 to 24th |
30% |
(1) Excluding cost of land.