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Units sold

The operations of Camargo Corrêa Desenvolvimento Imobiliário (CCDI) are organized in three business fronts: residential real estate for the low-income segment through the subsidiary HM Engenharia; medium- and high-standard enterprises, and large, high-standard (AAA) commercial or corporate properties.

In 2011, pre-sales in these three segments amounted to R$ 1,174.2 million, remaining stable compared to the previous year due inventory sale efforts, representing 91.1% of the total. The year had the highest number of deliveries in CCDI’s history, with 3,613 units delivered. This higher volume caused significant deviations of costs compared to traditional projects, and had a consequent negative impact on financial results. They reflect pressures from the cost of labor and materials, management challenges, and contractual disputes with some outsourced construction companies. Overall, units sold amounted to 5,714.

To face the challenges, CCDI restructured its business management. Effective construction cost control and improved margins became increased concerns, and one measure was to undertake the construction of the company’s own projects. In addition, emphasis was put on the low-income segment, where sales grew by 87% in the year. In commercial properties, the company closed 2011 with two major projects, both in the city of São Paulo: JK project, in Vila

Olímpia neighborhood – in the land plot where Camargo Corrêa Group has its head office – and a project to be constructed in the land that formerly held the mansion of Matarazzo family, at Paulista Avenue.

In the year, the Real Estate Development unit recorded net revenue of R$ 947 million, down 8.0% compared to 2010. As a result of difficulties in the year, the EBITDA (earnings before interest, taxes, depreciation, and amortization) and the net profit were negative R$ 121 million and R$ 127 million, respectively.