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Notice to the Market - EZTEC announces the acquisition of a new land piece on the South zone of São Paulo


EZTEC announces the acquisition of a new land piece on the South zone of São Paulo

São Paulo, November 25th, 2013 - EZTEC S.A. (BOVESPA: EZTC3; Bloomberg: EZTC3 BZ) announces the acquisition of a new land piece in the South zone of São Paulo city. This land piece, called Chucri Zaidan, is located inside the Urban Operation Água Espraiada - Chucri Zaidan sub-region where EZTEC has been launching since 2009 and already has 4 different projects in this region, including the EZ Towers project, EZTEC´s largest project under construction.

Initial studies indicate an estimated PSV of R$900 million for this land piece and an acquisition cost, considering expenses for increasing the project´s potential sale area, of around 18% of the PSV. The land site, with 17,792 sq.m. in one of the city´s prime region, will be paid in 24 monthly payments (corrected by the IPCA inflation index) using the EZTEC´s own resources. It´s important to point out that, apart from following the same profitability criteria as disclosed by the Company´s margin Guidance, this acquisition points to similar profitability levels as of recently launched projects and that its sale will also follow these same criteria.

Due to the size of this land piece, which will increase the Company´s landbank in 23%, the exact profile of the future project and the commercialization strategy are still being studied and, therefore, information on the expected launch period will only be decided after these studies have been concluded.

Considering both the Chucri Zaidan land acquisition and EZTEC´s 3Q13 reported landbank, the Company has reached, at this moment, a potential sales value of R$4.8 billion in its landbank, for an average acquisition cost of 12.6% of the PSV.

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Telephone: +55 11 5056 8313
E-mail: ri@eztec.com.br