PREVI - Relatório Anual 2007

The real estate investment segment is composed by participations in shopping centers, office buildings to lease, hotels and other units. Its profitability reached 16.61 % in 207, becoming an alternative segment interesting to the diversification of investments. The total amount of its portfolio in December, came to R$2,7 billion. This portfolio contributed with a liquid income amounting to R$269 million, originating from rents. Its revaluations (39 pieces of real estate) represented a gain of R$159 million. Units totaling R$113 million were sold in compliance with a policy of updating the stock of real estate. For managing purposes, this segment is divided in units that appeal to the highest luxury levels (standard portfolio); others, the economic utilization of which is being reconsidered; in real estate to be sold ("desfazimento" - undoing) and investment funds in real estate assets.

PREVI's performance reduces vacancy
By following the terms of lease contracts, PREVI participates closely of all events of deliberative character, such as General Assemblies and meetings of the Board of Trustees. Its actuation close to the undertakings certainly contributed to reduce the vacancy percentage of real estate units from 8 % at the beginning of the year to 3.5 % in December 2007.

Highligts

• To keep attractive to the retail sector the appeal of shopping centers in which it participates, PREVI supports its revitalizations and technological updates that demanded investments in the vicinity of R$8,5 million.
• With pioneer initiatives, PREVI is in favor of adopting corporative governing practices in the real estate undertakings in which participates, as occurs in the other types of commercial ventures. In that regard, PREVI follows closely the work of managing companies, by performing audits in the accounting, financial and asset practices practiced in those undertakings. In addition, it sets up technical committees to monitor the improvement and modernization works in shopping centers.