annual report 2017

Curitiba 381 building, São Paulo


The year 2017 held important changes for our real estate development operation. After a major internal restructuring process, we adopted a new name, transitioning from Brookfield Incorporações to Tegra Incorporadora.

Tegra completed 40 years in 2017, a period during which it delivered 100,000 properties – totaling approximately 258 million sq. ft. of built-up area. The company provides jobs for around 1,000 employees in its operations and primarily focuses on markets in São Paulo, Rio de Janeiro and Campinas.


The real estate development market presented slight signs of recovery in 2017. According to data from the Brazilian Real Estate Developers Association (Abrainc), between November 2016 and November 2017, the sector recorded an increase of 9% in the total volume of releases, while sales grew a little over 5% during the same comparison base. The lack of clear regulations on the issue of contract cancellations – and the consequent margin for misinterpretation on the subject – remained a factor of concern for the industry. In the case of property considered from average to high-end, the cancellation index almost reached 45% year to date, also according to Abrainc data.

Tegra, in turn, closed 2017 with sales of approximately BRL 1.6 billion, an amount 10% higher than the amount recorded in 2016. Throughout the year, 16 projects were delivered, which totaled 3,400 units and approximately 5.4 million sq. ft. of built-up area. The real estate market remained stagnant in Rio de Janeiro in 2017, which is why Tegra decided to concentrate its activity in São Paulo, where seven new projects were launched, with a Total Potential Sales Value (VGV) of approximately BRL 900 million. The sales volume of the launches, especially in the last three months of the year, exceeded expectations. One example is the PIN Home Design building: launched in November 2017, in the Pinheiros region of São Paulo, the building accomplished the year with over 70% of its 160 residential units sold.

The business of urban lot developments, created in 2016, will operate under the Tamboré brand moving forward. At the year-end, the land bank totaled approximately 44 million sq. ft., of which 30 million sq. ft. is in the region of Tamboré/Santana do Parnaíba, in São Paulo. We are focused on smaller cities, close to the major urban centers of São Paulo, Rio de Janeiro and Minas Gerais and believe that this segment, where we already have operational experience in other countries, offers interesting opportunities, attractive margins and appropriate risk-returns.

Autoral building, São Paulo.


For the residential real estate development segment, our outlook for 2018 is for a gradual market recovery. This recovery has already been seen, especially in the São Paulo market as of 4Q17, and may be accentuated by a reduction in interest rates and delinquency rates. We remain optimistic on the prospects of regulations on the issue of cancellations, a matter that is relevant for our business and the object of a bill to be submitted to the National Congress.

Tegra is expecting to launch 13 ventures in 2018, eight in São Paulo, three in Campinas and two in Rio de Janeiro, corresponding to a total VGV of BRL 1.5 billion. We anticipate delivering over 2,000 units and 3 million sq. ft. of built-up area.

The company should launch two projects under the Tamboré brand in 2018, in the municipalities of President Prudente and Barretos, in the State of São Paulo.


PIN Home Design building, São Paulo.
Praça Gaivota building, São Paulo.
Fontano building, Rio de Janeiro.
Vanguarda building, São Paulo.
Home Design Pinheiros building, São Paulo.