Equity International Announces New Stake in
ACQUISITION OF TENDA SHARES EXPANDS PRESENCE IN HIGH GROWTH SECTOR
CHICAGO, March 19, 2009 – Equity International, the privately held investment company focused
on real estate‐related businesses operating outside of the United States, announced today the
acquisition of approximately 20 million shares in Construtora Tenda S.A. (Bovespa:TEND3), a
publicly traded Brazilian homebuilder focused exclusively on the affordable/entry‐level segment.
This transaction, through Equity International’s Fund IV, represents an approximate 5 percent
ownership stake. Tenda marks Equity International’s fifth portfolio company investment in Brazil.
Headquartered in São Paulo, Tenda was founded in 1994 in Minas Gerais as a high‐quality, low‐cost
homebuilder, solely dedicated to the affordable/entry‐level housing segment. The Company is
focused on the fastest‐growing metropolitan regions in Brazil with the greatest housing deficits, and
currently operates in 64 cities across 13 states. In October, Gafisa S.A. (NYSE:GFA; Bovespa:GFSA3),
another Equity International portfolio company, acquired a 60 percent majority ownership stake in
Tenda through the merger of its Fit Residencial business unit with Tenda.
“Equity International is excited about the affordable homebuilding sector in Brazil as significant
unmet demand, magnified by household formation, creates an extraordinary growth opportunity,”
said Gary Garrabrant, chief executive officer of Equity International. “This transaction distinguishes
Tenda as an Equity International portfolio company and we look forward to working directly with
the Tenda management team to capitalize on this opportunity.”
Brazil has a large, youthful and growing population, with ongoing household formation and
substantial demand for new housing. With a housing deficit estimated at approximately 7.2 million
homes, the need is particularly acute at the affordable/entry level. Tenda is the only national
homebuilder in Brazil that is fully focused on this market segment. In addition to its national
presence and large land bank, the Company boasts a unique, dedicated in‐house sales channel that
differentiates it from other builders in the market: Tenda owns and operates more than 30 stand‐
alone retail centers, through which its 300+ person sales force is able to sell units across multiple
Tenda projects from centralized locations, increasing the product choices and sites available to
consumers. These centers also enable Tenda to initiate credit analysis and mortgage approval
applications, simplifying the entire purchasing process for these first‐time homebuyers.
“Equity International is recognized as a leading investor and builder of world‐class companies, and
we are proud that they have chosen to invest in Tenda,” said Carlos Trostli, chief executive officer of
Tenda. “Tenda will benefit greatly from Equity International’s global experience, particularly in the
affordable/entry‐level homebuilding sector.”
Equity International will provide strategic direction and counsel to the Company in addition to
tactical contributions. Thomas McDonald, Equity International’s chief strategic officer, will join the
Tenda Board of Directors pending shareholder approval.
About Equity International
Equity International is a privately held investment company focused exclusively on real estate‐
related businesses operating outside of the United States. Founded in 1999 by Sam Zell and Gary
Garrabrant, Equity International is recognized as a leading international investor and partner of
choice with multi‐dimensional capability. With $1.5 billion raised through a series of four funds and
invested across 18 portfolio companies to‐date, Equity International’s presence spans the globe and
the real estate spectrum. Equity International is affiliated with Equity Group Investments, LLC, the
investment company founded and led by Sam Zell, with a vast array of corporate and real estate
interests. For more information, please visit www.equityinternational.com.
Allison T. Davis