Explanatory notes
10. Real Estate Investments
Assets in this segment totaled R$2,936,859 thousand (R$2,866,699 thousand in 2006), distributed according to the table in item 7 of these Notes.
Resolution CVM 3456 of June 1st 2007, establishes that real estate must be evaluated at least once every three years.
Out of the 93 pieces of real estate that compose PREVI's portfolio, 48 were reevaluated during 2007 based on appraisals from independent companies, resulting in a positive asset variation in the portfolio of R$225,369 thousand, according to the table below:
The provisions for losses and for doubtful liquidation of that segment amounted to R$ 197,522 thousand (R$178,818 thousand in 2006) as per table below:
The Reserve for Losses relative to the advances pending repayment from Fundação Umberto I was bolstered with R$22,010 thousand, totaling R$117,805 thousand (R$95,795 thousand in 2006).
There was a reduction in the Reserve for Losses corresponding to the legal suit concerning the rescission of the deeds referring to the promise of sale of the 7th floor and of the technical floor of Centro Empresarial Mourisco, brought by Brascan Imobiliária Incorporações S.A. and by A.C. Lobato Engenharia S. A. in view of the formalization of an agreement relative to the legal action. Its balance 1n 2007 amounted to R$19,371 thousand (vs. R$23,000 thousand in 2006).
The Provision for Doubtful Receivables corresponds to credits in contracts with minimum guarantees and lessees in arrears. In 2007, the default reached R$60,346 thousand (R$60,023 thousand in 2006).