PDG R lt t th A ti lPDG Realty enters the Argentinean real estate market through stake acquisition

i TGLTin TGLTInvestor Relations:

Mi h l WMichel Wurman CFO and IROJoão Mallet

Financial and IR ManagerGustavo Janer

Financial and IR Analyst

1

y

Telephone: +55 (21) 3504-3800E-mail: ri@pdgrealty.com.br

Website: www.pdgrealty.com.br/ir

Agenda

Acquisition RationaleAcquisition Rationale

TGLT Company Profile

AppendiAppendix

2

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.Accumulate land bank through attractive deals.

Continue its strategy of investment diversification through partnerships with major market players.

D l St tDeal Structure:

– 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

TGLT Company Profile: Opportunity

There is a highly attractive opportunity to lead the transformation of the residential 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. Theeconomy has been growing at high rates for the last 4 years with the real estateeconomy has been growing at high rates for the last 4 years with the real estatesector in the frontline of this recovery.

– With barely any mortgages available to finance acquisition of property, less than 3%f h k h h Th h h fof the market has access to new homes. Through the appearance of mortgages

demand for new homes will increase significantly.

– Argentina is set to follow the path that Brazil and Mexico’s real estate marketsfollowed less than a decade ago.

– There are few development companies in Argentina that are prepared to lead thisprocess with access to capital markets and institutional investors.process with access to capital markets and institutional investors.

4

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:based on sales, profitability and quality of the products. The strategy consists in:

– Developing large residential projects in main cities of Argentina – mostly BuenosAires, Rosario, Cordoba and Mendoza, with after-tax margins ranging from 18%t 27% d di th k t tto 27%, depending on the market segment.

– As mortgages permeate to the lower income brackets, developing projects for allmarket 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 itspshareholders or debt. Whatever portion TGLT is unable or unwilling to fund, it willuse co-investments from PDG Realty or any other partner for developmentprojects and land banking.

5

TGLT Company Profile: The Company

TGLT is a real estate company that has been successfully investing in Argentina since 2002:

TGLT h t f f i l th t f t ti it t d– TGLT has a team of professionals that foster creativity, transparency andintegration with strategic partners. TGLT has been able to attract the mosttalented professionals in the market, most of who have either been trained in theUS or have master’s degrees in real estate.g

– The company controls all the steps of the development process. It has developeda collaboration model with key partners (construction management companies,brokers designers constructors vendors and advisors) which allows TGLT tobrokers, designers, constructors, vendors and advisors) which allows TGLT togrow fast with proven methodologies.

6

TGLT Company Profile: The Company

– Founding partner is Federico Weil (BS, MS in Industrial Engineering - Universityof Buenos Aires / MBA – Wharton). He has been investing in Argentina for thelast 7 years, generating annual returns of over 100% for foreign institutionalinvestorsinvestors.

– Federico Weil began investing in real estate in early 2002, a few weeks after thecrisis, when he structured with other partners the acquisition of PecomAgropecuaria (now Adeco) backed by Soros a company owning 85 000 hectaresAgropecuaria (now Adeco) backed by Soros, a company owning 85,000 hectaresof premium farmland in Argentina. Adeco is now one of the largest and mostsuccessful farmland operators in the country.

– Prior to its partnership with PDG Realty, TGLT has been developing Forum BuenosAires (www.forumbuenosaires.com), a 47,000 m2 of residential project in dockIV of Puerto Madero, Buenos Aires. The project – 80% sold - will be completed inApril 2008.p

7

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 t i l t d i P t N t d l d l 5 i t– The property is located in Puerto Norte, a re-developed area only 5 minutes awayfrom downtown Rosario, that resembles Puerto Madero (most prominent newlydeveloped 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 themy 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

Appendix: Argentinean Real Estate Market

Demographics:

– Argentina, with almost 40 million people, is the third largest country in LatinAmerica.

– Argentina is an urbanized country with almost 90% of the population living inurban centers.

– Greater Buenos Aires – with more than 13 million people - is the 8th largest city– Greater Buenos Aires – with more than 13 million people - is the 8th largest cityin the World and the 3rd largest city in Latin America.

– Half of the population lives in large urban centers, mostly in Greater BuenosAi C d b R i d M dAires, Cordoba, Rosario and Mendoza.

9

Appendix: Argentinean Real Estate Market

Residential Products:

– In the City of Buenos Aires, 80% of the population lives in multi-family condosand 20% in single-family dwellings.

– In Greater Buenos Aires, though gated communities became fashionable over thelast 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 abouteven.

10

Appendix: Argentinean Real Estate Market

Consumer Behavior:

– Argentina has a young, urban population which, despite its preference for homeownership over rentals, has been unable to buy homes over the last decade,leaving a significant pent-up demand which should be reverted as householdleaving a significant pent up demand which should be reverted as householdincome recuperates:

– Argentines have a high propensity to save in real estate. People invest in realestate as a value preservation tool (mainly for their own residencies) or for rentalestate as a value preservation tool (mainly for their own residencies) or for rentalincome (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

Appendix 2: TGLT Business Model

TGLT’S Business Model:

SUBCONTRACTORS

SUBCONTRACTORS

CONSTRUCTIONMANAGEMENT CONTRACTORSBROKERS

ARCHITECTS

GENERALCONTRACTOR

CONSTRUCTIONMANAGEMENT CONTRACTORSBROKERS

ARCHITECTS

GENERALCONTRACTOR

CONSTRUCTION PROCUREMENTBUSINESSDEVELOPMENT LOCAL

TAXGRAPHIC DESIGN

CONSTRUCTION PROCUREMENTBUSINESSDEVELOPMENT LOCAL

TAXGRAPHIC DESIGN

ADMINMARKETING

SALES FINANCIALPLANNING

PRODUCTDESIGN

INTL.TAX

ACCOUNTINGSUPPORT

PRESS

ADVERTISING

ADMINMARKETING

SALES FINANCIALPLANNING

PRODUCTDESIGN

INTL.TAX

ACCOUNTINGSUPPORT

PRESS

ADVERTISINGPLANNINGDESIGN

ARCHITECTS HEADBROKER

PLANNINGDESIGN

ARCHITECTS HEADBROKER

12

BROKERSINSTALLATION

ENGINEERS BROKERSINSTALLATION

ENGINEERS

Appendix 3: PDG Realty´s timeline

PDG Realty´s track record proves its ability to continuously originate co-developments and private it t itiequity opportunities

Additional

PrivateEquity...

Acquisition of 20% stake

Set-06JVJV

Acquisition of 40% stake

JVJV

Additional acquisition

of 21%

Joint Venture CHL & PIAL

Joint Venture PDG & Abaurre JVJV

Acquisition of 30% stake

Feb-06Additional acquisition

of 10%

May-06 Nov-06JVJV

Feb-07April-07

June-07

Sale of 20% stake

CHL & PIALJVJV

August-07

Founding44 projects launched

2003 -2006 14 projects launchedR$ 250 mm Debenture issuance

21 projects launched2Q07

2003

Jan-07

IPO...and co-development

investments.

1Q07 issuance2Q07

13

Appendix 4: Portfolio Investments

Even in a competitive environment PDG Realty was able to make important acquisitions in accretive deals

Mid to Low IncomeMid to Low Income Mid to high incomeMid to high income Land parcelingLand parceling Rental Income Rental Income

Current portfolio enables strong presence in all market segments:

ServicesServices

Part.: 70%Focus: São Paulo, Rio de Janeiro and Espirito Santo

Part: 17%Focus: São Paulo Part: 17% (indirect)

Part.: 50% of a joint ventureFocus: São Paulo

Mid to Low IncomeMid to Low Income Mid to high incomeMid to high income Land parcelingLand parcelingPropertiesProperties ServicesServices

Part : 49%and Espirito Santo Part: 17% (indirect)Focus: São Paulo

Focus: São Paulo

Part: 50%Focus: Rio de Janeiro

Focus: São Paulo and Rio de Janeiro

Joint VentureFocus: Rio de Janeiro

JVJV

Part: 50% of a joint ventureFocus: Bahia

JVJV

Joint VentureFocus: Niteroi RJ

JVJV

Joint VentureFocus: Espirito Santo

Focus: Niteroi, RJ

14Part: 30%Focus: Argentina