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IsoCret-LINK-Global-Presentation

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IsoCret-LINK-Global-Presentation

  1. 1. JUNE 2013 Link Global Holdings, LLC PresentaƟon On The Brazilian Sustainable Housing Market Opportunity Featuring A Strategic Alliance With IsoCret Do Brasil Exclusive Proprietary Technology Holders For All Insulated Concrete Form (ICF) Manufacturing In Brazil To Produce EPS Based Structures For Both ResidenƟal and Commercial ApplicaƟons ConfidenƟal and Proprietary InformaƟon
  2. 2.  Hands‐on experience in government advisory, banking, finance and construcƟon  The partners that make up the LINK team are focused mostly on large scale projects, such as with energy generaƟon, water, Ɵmber, mining, telecom, transportaƟon, and sustainable housing  InternaƟonal Consultants for over 25 years  AcƟve in more than 30 Countries  Strong relaƟonships with IMF, World Bank, Global Capital Markets & Ex‐Im Bank  Investment Banking‐with Heavy Experience in complex deal structure
  3. 3. ExecuƟve Summary  Brazil has emerged as one of the favorable destinations for the real-estate developers to tap unexplored opportunities in the housing sector, despite gloomy economic environ-ment. This is largely due to the fact that, the country is facing massive housing shortage owing to demand-supply mismatch. With recession hurting the econo-my, low cost or affordable housing units are fast emerging as the next area of growth in the country’s housing sector.  The government has taken initiative to boost the housing sector by pouring down invest-ments in different states of Brazil. The Brazilian residential market is one of the safest markets, where the procedure for investment is fast and the demand is also growing rapidly. Affordable housing units are fast emerging as the next area of growth in the country’s housing sector.  Along with the Intergovernmental Renewable Energy Organization (IREO), there are least two other United Nations recognized entities, including United Nations Human Settle-ments Programme, UN-HABITAT, and United Nations Environment Programme (UNEP). Each has devoted significant resources to better understanding and supporting sustaina-ble housing projects in Brazil. Key members of LINK Global have a direct affiliation with IREO.  Economic indicators show that the Brazilian economy will continue to accelerate until at least 2017. There are several Global Events (ex, World Cup, 2016 Olympics) that will support local businesses and service sectors. Brazil has a housing deficit of 6 million to 8 million units. On average, every year, about 1.5 million households are created in the country, while builders in Brazil construct only half that number of housing units.  The total value of outstanding mortgages in Brazil is less than 4% of GDP now, and the total number of mortgages disbursed in the country as of May 2011 was around 400,000. More than 90% of the estimated housing deficit of 6-8 million units is in the low -income space. To address this deficit, the Lula administration launched an affordable housing scheme called Minha Casa, Minha Vida (My House, My Life) in 2009. The num-ber of new families that will be created in Brazil over the next two decades is projected to touch 95.5 million, a pace of increase equivalent to 58% or double the rate of population growth across the globe.  The extent of foreign investment in Brazil is highlighted in a new report by Ernst & Young, which hails the Latin American nation as "an investment success story" attracting a record number of foreign direct investment (FDI) projects last year. With the value and number of inward investment projects having tripled since 2007, from US$19 billion to US$63 billion, the firm identified Brazil as now the second most popular global destination in terms of FDI value, and the fifth in terms of num-ber of projects.  The United States continues to be the largest investor in Brazil in terms of projects (up 43 per cent), but China has risen to fifth place, its FDI share increasing six-fold since 2010, with a 70 per cent rise in project numbers. As the Ernst & Young report notes, the Brazilian consumer market has also led to an increase in investments by small- and me-dium- sized Chinese companies in the country's manufacturing sector.  Jorge Menegassi, CEO, South America and Brazil, at Ernst & Young, says Brazil is an at-tractive investment destination for Chinese companies, thanks to its vast natural re-sources in oil, gas and minerals. "In the future, Chinese investment is also ex-pected to be directed at the areas of technology, logistics and infrastructure."  Brazil’s president Dilma Rousseff has been pushing Brazil further on the road to develop-ment charted by Lula da Silva’s, lifting many Brazilians from poverty unto the middle class. The successful poverty reduction program has led to real average incomes rising by 9% from 2002 to 2012, according to the Instituto Brasileiro de Geo-grafia e Estatistica (IBGE). In 2011, 54% of Brazilians were middle class, up from 34% in 2004, according to Cetelem BGN and Ipsos Research Institute –a total of 103 million middle class Brazilians, who account for 4 6% of the coun-try’s purchasing power. Rousseff predicts that around 60% of Brazilians will be middle class by 2018. The expansion of Brazilian middle class has made it real es-tate’s target market, replacing wealthy international buyers who used to dominate the market in major cities like São Paulo and Rio de Janeiro.  Link Global Holdings and IsoCret Do Brasil have entered into a Joint Venture agreement to manufacture and market housing units geared towards the Low to Mid-Market sectors in Brazil and South America. This is a 50% - 50% venture with both companies maintaining equal ownership rights. IsoCret Do Brasil (ISOCRET), is an established Manufacturer and Contractor in Brazil with over 10 years experience selling it’s PROPRIETARY technology based Insulated Concrete Forms (ICF) building sys-tem. As a pioneer in the ICF industry ISOCRET retains an exclusive patent that is valid throughout the entire Country of Brazil.  The primary benefits to IsoCret’s proprietary building materials technology and construction practices is that it allows for both Residential and Commercial housing units to be built 80% faster than conventional methods, with a cost savings of up to 40% over traditional construction costs, all the while providing thermal comfort, energy efficiency, and is sustainable in practice.
  4. 4. Confid enƟal The LINK Global Holdings and IREO (Intergovernmental Renewable Energy Organization) relationship explained: The Intergovernmental Renewable Energy Organization (IREO) was established to promote the urgent transition to sustainable development and renewable energy sources. In support of the United Nations, IREO is building long-term partnerships with key public and private stakeholders on projects that improve peoples’ lives, protect the environment, and preserve our planet’s resources for future generations. • Promoting clean energy and conservation • Enabling developing countries to become leaders • Fostering government and private sector collaboration • Developing new models for project finance and implementations  Promoting awareness through education and communication IREO’s Sustainable Development Commission (SDC) The IREO SDC exists to foster the development of buildings and communities designed to respect local culture, improve human health, ensure environmental balance and create prosperity. SDC Vision The IREO SDC influences civilization’s sustainability by creating bio-regional harmony and long-term viability together with the built environment. SDC Functions The IREO Sustainable Development Commission (SDC) was created in 2010 to implement sustainable design and construction practices into planning, architecture, construction and habitation of the built environment. Based on a “quadruple bottom line” holistic approach which acknowledges the fact that sus-tainable development benefits people, the planet, culture and profit of both the developers and the inhabitants, IREO SDC’s activities use transparent and sustainable practices, includ-ing water conservation, renewable energy, resources conservation, carbon-neutral (or car-bon- negative) approaches, pollution reduction and impact reduction. SDC teams lead, manage, research, study, design, plan, advise and consult with stakehold-ers to influence and guide the development of communities, civic/governmental, commer-cial, resort, housing, and agricultural sector buildings. SDC teams engage projects at any point in the development process, from project conception, to planning and design, through construction and occupancy. Areas of focus include: • Renewable energy • Natural resources • Materials usage • Waste recovery • Transportation • Agriculture and food systems • Wellness and health  Education  Communications Four members of LINK Global Holdings, including: Rand Neveloff, Mark Dagel, Carl Williamson, and John Hill are also active members of the IREO. Each bringing with them their unique talents to be utilized in support of the United Nations and its global endeavors. The IREO maintains an office inside the United Nations facility and frequently holds meetings and events along with other United Nations recognized organizations.
  5. 5. Other United NaƟons Recognized OrganizaƟons With Sustainable Housing Interests
  6. 6. ConfidenƟal The United Nations Human Settlements Programme, UN-HABITAT, is the United Nations agency for human settlements. It is mandated by the UN General Assem-bly to promote socially and environmentally sustainable towns and cities with the goal of providing adequate shelter for all. Towns and cities are growing today at unprecedented rates setting the social, political, cultural and environmental trends of the world, both good and bad. In 1950, one-third of the world's people lived in cities. Just 50 years later, this rose to one-half and will continue to grow to two-thirds, or 6 billion people, by 2050. Cities are now home to half of humankind. Cities are the hubs of much national production and consumption - economic and social processes that generate wealth and opportunity. But they also create disease, crime, pollution, poverty and social unrest. In many cities, especially in developing countries, slum dwellers number more than 50 per cent of the population and have little or no access to shelter, water, and sanitation, education or health services. It is essential that policy-makers understand the power of the city as a catalyst for national development. Sustaina-ble urbanisation is one of the most pressing challenges facing the global communi-ty in the 21st century. UN-HABITAT's programmes are designed to help policy-makers and local communities get to grips with the human settlements and urban issues and find workable, lasting solu-tions. The organization's mandate is outlined in the Vancouver Declaration on Human Settlements, Habitat Agenda, Istanbul Declaration on Human Settlements, the Declaration on Cities and Other Human Settlements in the New Millennium, and Resolution 56/206. UN-HABITAT's work is directly related to the United Nations Millennium Declaration, particularly the goals of member States to improve the lives of at least 100 million slum dwellers by the year 2020, Target 11, Millennium Development Goal No. 7, and Target 10 which calls for the reduction by half of the number without sustainable ac-cess to safe drinking water. UN-HABITAT's strategic vision is anchored in a four-pillar strategy aimed at attaining the goal of Cities without Slums. This strategy consists of advocacy of global norms, analysis of information, field-testing of solutions and financing. These fall under the four core functions assigned to the agency by world governments - monitoring and research, policy development, capacity building and financing for housing and urban development. Sustainable Social Housing Initiative (SUSHI) The Sustainable Social Housing Initiative (SUSHI) is developed by the United Nations Environment Programme (UNEP) to increase the use of sustainable building solutions in social housing programs in developing countries. This project provides guidelines and case studies for developers to integrate sustainable solutions in the design, construction and operation of social housing units. From 2009 to 2011, the SUSHI approach and guidelines were tested in Brazil and Thailand. From 2012 to 2013, a new pilot project will be developed in India and Bangladesh. Pilot projects in Brazil and Thailand Project teams in São Paulo and Bangkok worked in collaboration with housing develop-ers, construction companies, financial institutions and final users to identify sustainable solutions available on the market and applicable to the local context. The solutions were selected to improve the energy efficiency (including provision of therma l comfort) and water efficiency (water supply and consumption) of social housing units. In São Pau lo, t he project tea m, in close cooperation with the State of São Paulo’s Housing and Urban Development Agency (CDHU), developed an analysis of lessons learned from previous experiences in integrating sustainable features (e.g. alternative design solutions, solar water heater, or individual water meters). The conclusions led to the elaboration of recommendations for the uptake of sustainable solutions. The team also worked with the Caixa Economica Federal bank to develop criteria for a sustainable housing label to be applied to social housing projects. In Bangkok, the project team worked with the Nation-al Housing Authority to develop site-specific guidelines for two project sites in Bangkok, including a cost-benefit analysis for selected sustainable technologies. The team also conducted several training programs on design and construction of sustainable buildings with local stakeholders, and prepared a database of available sustainable alternatives for webpublication. Finally, to increase awareness of the role of sustainable buildings, the team developed an educational video to be distributed in universities across the country. design, were India and Bangladesh. Other United NaƟons Recognized OrganizaƟons With Sustainable Housing Interests...
  7. 7. Brazilian Sustainable Housing Market Opportunity Summary
  8. 8. Brazilian Housing Market Summary Brazil has emerged as one of the favorable destinations for the real-estate developers to tap unexplored opportunities in the housing sector, despite gloomy economic environment. This is largely due to the fact that, the country is facing massive housing shortage owing to demand-supply mis-match. With recession hurting the economy, low cost or affordable housing units are fast emerging as the next area of growth in the country’s housing sector. The Brazilian housing industry has emerged as the most vibrant and dynamic section of the real-estate industry. With the entry of numerous real-estate developers, availability of finance options and increasing demand for residential property, housing industry has witnessed stupendous growth in the past. Further, lower and middle-income segment is taking a larger share of funding to purchase the long awaited home ownership. Given the changing preferences of Brazilian consumers and improving living standards, the residential property construction has witnessed tremendous shift during the past few years. New policies, latest & innovative technologies, and novel designs suited to the well being of the residents and society have become more crucial conditions for property acquisition. Moreover, there are several other is-sues, ConfidenƟal such as environmental protection and economic prosperity that needs to be tackled. The government has taken initiative to boost the housing sector by pouring down investments in dif-ferent states of Brazil. The Brazilian residential market is one of the safest markets, where the proce-dure for investment is fast and the demand is also growing rapidly. Affordable housing units are fast emerging as the next area of growth in the country’s housing sector. Housing prices have risen by over 10% so far this year on a nationwide basis. Home loans increased at an annual pace of over 40% in the first half of 2012, much faster than the 18% expansion in over-all credit. This eye-catching growth is raising concern. Lending booms preceded the housing busts in Spain and the US. However, Brazil is a different story in a number of important respects. There is no question that housing prices in Brazil have surged in recent years. In the country’s two largest cities – Rio de Janeiro and Sao Paulo – prices have risen at an annual pace of over 20% . The other factor that reduces the likelihood of a dramatic housing bust is that the rise in housing pric-es has been driven – at least in part – by fundamentals, including a scarcity of adequate housing and a growing middle class. A study by the João Pinheiro Foundation, a government think-tank, estimates the country’s housing deficit at 5.8 million homes. In contrast with advanced economies like Spain and the US, mortgages are still in their infancy in Brazil. During the country’s years of hyperinflation in the 1980s and 1990s, housing finance was virtu-ally non-existent, and the vast majority of buyers paid for their homes in cash. Housing finance is still not widespread. Less than 50% of property purchases in Brazil are financed with mortgages. Conse-quently, the growth in home loans is coming from a very low base. Home loans cannot rise at a double-digit pace indefinitely. Nevertheless, a housing bust along the lines of that seen in Spain or the US is unlikely. Even if home loan defaults were to rise significantly as occurred in these other markets, this would not pose the same degree of systemic risk to the broader economy because Brazil’s mortgage market is tiny. The total value of outstanding mortgage debt in Brazil is around 5.5% of GDP. In contrast, Mexico and China have debt-to-GDP ratios of over 10% of GDP, while the UK and US have ratios in excess of 70%. The relatively low credit penetration in Brazil suggests the rapid growth in property lending is part of a broader financial deepening process. In contrast with what occurred in Spain and the US, Brazilian banks have not significantly relaxed their underwriting standards. A rise in the loan-to-value ratio often serves as a warning sign. Howev-er, in Brazil’s case, the loan-to-value ratio has remained broadly stable – reaching 71.5% in June. With few exceptions, buyers need to place a substantial down payment and cannot finance 100% of their home purchase. The profile of borrowers should provide added comfort to those worried about a cascade of defaults triggering a housing crisis. Most of the financing is destined for first-time home buyers and only a small number of borrowers hold more than one mortgage. The average household devotes less than 10% of their annual income to servicing their mortgage debt, which is much lower than advanced economies. Meanwhile, the default rate on home loans in June reached 1.9% – in line with the 2.0% default rate registered at end-2011 and the lowest of any credit segment. due to the government’s efforts to slow down credit growth.
  9. 9. ConfidenƟal Brazilian Housing Market Highlights:  There is an extreme need for affordable sustainable housing in a growing part of the world.  Economic indicators show that the Brazilian economy will continue to accelerate until at least 2017  There are several Global Events (ex, World Cup, 2016 Olympics) that will support local businesses and service sectors  Most housing developers are losing profits due to high labor costs. Our exclu-sive building products are less labor intensive.  Brazil has a housing deficit of 6 million to 8 million units. On average, every year, about 1.5 million households are created in the country, while builders in Brazil construct only half that number of housing units.  The total value of outstanding mortgages in Brazil is less than 4% of GDP now, and the total number of mortgages disbursed in the country as of May 2011 was around 400,000.  More than 90% of the estimated housing deficit of 6-8 million units is in the low-income space. To address this deficit, the Lula administration launched an affordable housing scheme called Minha Casa, Minha Vida (My House, My Life) in 2009.  The number of new families that will be created in Brazil over the next two decades is projected to touch 95.5 million, a pace of increase equivalent to 58% or double the rate of population growth across the globe.  Mortgage lending in Brazil soared 58% in 2010, but it is expected to increase around 30% in 2011
  10. 10. Brazilian Sustainable Housing Market Opportunity
  11. 11. ConfidenƟal Brazil's rising housing market in line with strong economic performance The nation's real estate sector may have slowed slightly, but it still continues to outshine almost any other market around the world. Brazil's success story has been the nation's 'ability to position itself as an increasingly attractive place to do business', says Ernst & Young chairman and CEO Jim Turley. Soccer-loving Brazil is also kicking goals in the property stakes, with values rising by a world-beating 18.4 per cent year-on-year. Brazil recorded the strongest growth of all markets surveyed in the latest Knight Frank Global House Price Index and, even though this is well short of the 30 per cent growth achieved in September 2011 - indicating the market has cooled in the past nine months, according to Knight Frank - it's still a healthy result in the global context. For as Knight Frank notes, despite news that global house prices nudged up 1.1 per cent on average in the three months to June 2012, the strongest quarterly rise since the same period in 2009), "these improved performances can do little to offset Europe's poor-performing housing markets. Here, the lack of available finance, shrinking job markets and low consumer confidence are stifling housing de-mand". Brazil's housing market has risen in line with its strong economic performance since 2004, says Kate Everett-Allen, International Residential Research, Knight Frank LLP. Increasing household wealth and falling unemployment, which fell from 13.3 per cent in 2000 to 6.0 per cent in 2011, help explain con-secutive quarters of double-digit growth, she says. "Demand [for housing], particularly from the emerging middle class, has intensified. Research sug-gests that the middle class now constitutes about 74 per cent of Brazil's total population, up from just 49 per cent in 2005," she says. Supply is struggling to meet demand, with Brazil's population forecast to rise by 40 per cent, or 78 million, by 2050, she adds. On top of domestic demand comes interest from overseas. A separate Knight Frank report identifies Brazil as "Latin America's emerging luxury second homes location", attracting cash-rich, time-poor for-eigners looking for a second home in the sun, especially in bigger cities such as Sao Paolo and Rio de Janeiro. Developers have catered to their fondness for luxury - especially for modern, integrated re-sort developments that offer a secure, gated environment. "Whether in a coastal, mountain or city centre location, buyers now have a range choice which has never existed before," Knight Frank says. The extent of foreign investment in Brazil is highlighted in a new report by Ernst & Young, which hails the Latin American nation as "an investment success story" attracting a record number of foreign di- With the value and number of inward investment projects having tripled since 2007, from US$19 bil-lion to US$63 billion, the firm identified Brazil as now the second most popular global destination in terms of FDI value, and the fifth in terms of number of projects. The United States continues to be the largest investor in Brazil in terms of projects (up 43 per cent), but China has risen to fifth place, its FDI share increasing six-fold since 2010, with a 70 per cent rise in project numbers. As the Ernst & Young report notes, the Brazilian consumer market has also led to an increase in investments by small- and medium-sized Chinese companies in the country's manufac-turing sector. Jorge Menegassi, CEO, South America and Brazil, at Ernst & Young, says Brazil is an attractive invest-ment destination for Chinese companies, thanks to its vast natural resources in oil, gas and minerals. "In the future, Chinese investment is also expected to be directed at the areas of technology, logistics and infrastructure." In terms of real estate and tourism, more than a quarter of respondents to the Ernst & Young survey believe both sectors are yet to reach their full potential, expecting "robust growth" in the near future. To Dean Thomas, managing director of DLT International, which is a developing land and villa project, Palm Springs Natal, the Brazilian real estate sector remains in its infancy "with vast scope for growth". Rumours of a further Greek bailout, continuing uncertainty in the euro zone and an "economic hango-ver" in the US have investors looking elsewhere for opportunities, Thomas says. "They are turning to Brazil and, increasingly, Brazilian real estate." Buoying that optimism is the prospect of the soccer World Cup in 2014 and the 2016 Olympic Games, both to be hosted by Brazil. And as Ernst & Young chairman and CEO Jim Turley points out, part of Brazil's success story has been the nation's "ability to position itself as an increasingly attractive place to do business". But according to Tim Murphy, CEO of IP Global, Brazil has gone off the boil for Hong Kong investors, who find the market "quite challenging" now. "There is no leverage at all, so as a foreigner, getting finance is impossible," he says. "Prices have risen 30 per cent in a couple of years, and while the mar-ket might have a bit more in it, it is tricky to make money when you can't leverage." For those who are buying, Palm Springs Natal offers two- and three-bedroom luxury villas set on 40 hectares of beachfront land priced from £152,500 (HK$1.9 million). Located in Rio Grande do Norte, the property is in one of the country's prime areas, as identified by Knight Frank.
  12. 12. Brazilian Housing Market Highlights Brazil is the largest country in South America, with a total area of over 8 million square kilometers (3+ million sq miles) 5th largest population in the world 300 billion in capital and infrastructure investments over the last 5 years 2014 World Cup (12 host cities) 2016 Summer Olympics Estimated to Become One of the Top 5 Global Economies by 2050 (Goldman Sachs) The Potential To Experience Even Bigger Economic Growth Over China by 2040 Current deficit of 6-8 million housing units in non-urban territories An additional estimates 3.5 million inner city (currently slum areas) units are at an immediate need 75% of Brazilians own homes, BUT 85% of all homeowners live in low quality, self built, single room housing units that are located in mostly in shanty towns Current Government subsidy programs are expected to continue over the next decade The Gross Domestic Product (GDP) in Brazil was worth 2476.65 billion US dollars in 2011. The GDP value of Brazil represents 3.99 percent of the world economy. A relatively low unemployment rate, while personal income is rising
  13. 13. ConfidenƟal Brazilian Market Housing Need Government estimates on the country’s housing deficit place the need at around 8 million units.
  14. 14. An esƟmated 18 million people in Brazil are living in sub‐standard housing either at, or below slum and shanty level. ConfidenƟal
  15. 15. But it does not have to be this way...there are opportuniƟes and opƟons available. ConfidenƟal
  16. 16. Brazil ‐ Economic Indicators
  17. 17. ConfidenƟal Brazil ‐ Economic Indicators
  18. 18. ConfidenƟal Brazil ‐ Economic Indicators ConƟnued...
  19. 19. ConfidenƟal Brazil ‐ Economic Indicators ConƟnued...
  20. 20. ConfidenƟal Brazil ‐ Economic Indicators
  21. 21. Brazil’s My House My Life Program ( Minha Casa Minha Vida )
  22. 22. ConfidenƟal Minha Casa Minha Vida (My House My Life)  Available to low income families who normally would not be able to own a home due to lack of income, personal savings and notable credit history  The program is very well subscribed and the challenge now is to keep up the supply with the demand  As an example, there are over 65,000 people on the waiƟng list in the city of Natal and a shortage of homes  Banks offer low interest rates and subsidized payments for low income and first Ɵme home buyers Mar. 11, 2011 Social Housing Program Paves the Way for Development in Brazil By Georgiana Mihaila, Associate Editor The Minha Casa Minha Vida (My House My Life) program is one of the world’s most ambitious social-housing programs, aiming at building 3 million homes by the end of 2014 and reducing the housing shortfall for low-income Brazilians by up to 40 percent. Financed by the government-owned Caixa Bank, the project was launched in 2009 with a budget of R$105,7 billion ($63 billion) under the slogan “homes for families, wages for workers and development for Brazil.” The largest Brazilian property developers—namely Estrutural, Cyrela, Gafisa and PDG & Agre—are all involved in MCMV projects, and in the third quarter of 2010 alone, 125,000 homes were financed. Caixa Bank provides both funds for the developers and affordable mortgages for homeowners. Due to its great success and an increase in the demand for property from middle and lower classes, Obelisk International, which has over 3,000 homes with an approximate value of €100 million ($160 million) under construction and management within the Minha Casa Minha Vida, is confident that 2011 is to be another excellent year for investment in Brazilian property. Therefore, Obelisk launched the second phase of the Minha Casa Minha Vida 4, the latest opportunity to invest in a Minha Casa Minha Vida project. Obelisk International is a private investment business that offers opportunities for private investors in Brazil. With offices in Natal, London, Manchester and Marbella, Obelisk is not only a solid presence, but one of the few European developers present in northeast Brazil, offering investment opportunities in a range of sectors such as residential real estate, construction and social housing.
  23. 23. Brazil Housing Market Risks and OpportuniƟes
  24. 24. Brazil house price hikes continue, despite bubble fears Brazil’s property market is overvalued by around 50%, claim Capital Economics, who have produced a whole raft of terrifying reasons why disaster hangs like a cliff over the Brazilian property market. Yet house prices in Brazil continue to rise, with house-hold ConfidenƟal incomes surging and an expanding mortgage market making finance easier to than ever to access. House prices in São Paulo rose by 18.8% during the year to July 2012, according to the FIPE ZAP Index of Dwelling Price Offers (12.9% adjusted for inflation). Price increases in Rio de Janeiro were even greater, up 19.8% (13.9% in real terms) during the same period. From January 2008 to July 2012, average house prices in São Paulo and Rio de Janeiro rose by 144.1% (91.7% in real terms) and 178.2% (118.4% in real terms). Rough data suggests most of the price-rises over the past year to end-Q2 2012 have occurred at the top and the bottom, based on average prices of units sold by Cyrela Brazil Realty, Brazil’s largest developer: Super-economic segment: house prices rose 31.1% to BRL 3,161 (US$ 1,554) per sq. m. Economic segment: prices fell 2.2% to BRL 3,198 (US$ 1,573) per sq. m. Middle segment: prices rose 0.02% to BRL 5,044 (US$ 2,480) per sq. m. Mid-high segment: prices rose 10.1% to BRL 5,465 (US$2,688) per sq. m. High-end segment: prices rose 21% to BRL 8,583 (US$ 4,221) per sq. m. Two major international sporting events are helping to arouse foreign interest in Brazil - the hosting of the 2014 Soccer World Cup, and the 2016 Olympics. With these two upcoming big events, some say the housing market boom will last till 2017. Property sales for the first half of 2012 were up slightly by 2.6% on the previous year, to 11,900 units, according to the Sindicato da Habitação (Secovi-SP), and in contrast, the total sales value fell by 1.5% to BRL 6 billion (US$ 2.95 billion). “There’s a psychological margin that Brazil real estate enjoys at the moment due to the oil discoveries off the coast of Rio, the World Cup and the Olympics, which makes Brazil very attractive to foreign investors at the moment,” says Marcus Vinicius de Oliveira, executive director of Consul Patrimonial. “But after 2017 Brazil will still have its oil discoveries, but the World Cup and Olympics will be done with and foreign investment into Brazil will slow as a result.” Capital Economics’ case for a bubble For over the year now, a US-like credit bubble has been feared to exist in Brazil. The country’s economic growth is slowing, and the wider global environment is not encouraging, with Europe’s sovereign debt crisis worsening, and Asia slowing. Capital Economics argues that the situation is now critical: Although credit as a share of GDP is low by developed world standards, Brazil has experienced a large jump in credit growth, which doubled from 25.8% in January 2005, to 50.6% in June 2012; Brazil’s debt service burden eats up 23% of disposable income, up from around 10% of income in 2005, according to a recent IMF report. The US’s debt service ratio stood at 18% when the credit bubble burst in 2007, up from 12% in 2000. Default rates have started, to rise reaching 7.8% in June 2012 Capital Economics estimates that housing could be overvalued by around 30% to 50%. Brazil’s consumer credit explosion resulted from a 10-year economic boom and increased domestic consumption, especially among the poorer classes. Mortgage credit, in particular, has been pushed by banks to homebuyers, especially to low and mid-income first-time homebuyers who are very sensitive to interest rate movements. Despite being at a historic low of 8%, Brazil’s key interest rate remains high, and a rise in rates could make first-time buyers struggle to finance their mortgages. The International Monetary Fund (IMF) however points to risk-mitigating factors: Relative to international standards, Brazil’s credit-to-GDP ratio remains low. The benefits of macroeconomic stabilization and gains in financial inclusion make up a significant portion in the recent credit expansion; Credit expansion has slowed in recent months, especially household credit. The estimated credit-to-GDP ratio has fallen signifi-cantly from its 2009-peak; Banks are seemingly resilient to adverse shocks; Bank supervision is strong. If the bubble bursts, the impact of any price decline on the wider economy may be somewhat moder-ated by the low share of housing loans in banks’ loan portfolios, the (IMF) notes. The rise of the middle class Brazil’s president Dilma Rousseff has been pushing Brazil further on the road to development charted by Lula da Silva’s, lifting many Brazillians from poverty unto the middle class. The successful poverty reduction program has led to real average incomes ris-ing by 9% from 2002 to 2012, according to the Instituto Brasileiro de Geografia e Estatistica (IBGE). “What I want my legacy to be is this country to be increasing middle class, to be highly competitive and highly educated,” Rousseff told Forbes. In 2011, 54% of Brazilians were middle class, up from 34% in 2004, according to Cetelem BGN and Ipsos Research Institute –a total of 103 million middle class Brazilians, who account for 46% of the country’s purchasing power. Rousseff predicts that around 60% of Brazilians will be middle class by 2018. The expansion of Brazilian middle class has made it real estate’s target market, replacing wealthy international buyers who used to dominate the market in major cities like São Paulo and Rio de Janeiro. Developers like Cyrela (a develop with a 10% market share in São Paulo and 25% share in Rio de Janeiro) have shifted from luxury projects, to the “economic” and “middle” segments, i.e., to middle-class buyers. Out of the 27,690 units launched by Cyrela in 2011, 7,155 units (26%) were for the super-economic segment, 9,690 units (35%) for the economic segment, and 1,500 units (5%) for the middle segment. In contrast 2,227 units (8%) were for the mid-high segment and 7,388 units (26%) for the high-end segment. In 2006, mid-high (48%) and luxury (5%) segments made up more than half of Cyrela’s launches. Brazil Housing Market Risks and OpportuniƟes
  25. 25. ConfidenƟal Housing credit is expanding; mortgage market remains small Lula’s pro-market reforms have greatly helped expand Brazil’s mortgage market. The first big break was the government’s ap-proval of fiduciary alienation, whereby the buyer becomes the owner of the property only after it has been fully paid. The bank or lending institution holds ownership of property, while the loan is being repaid. This gives banks security, if buyers default. In the past, banks were reluctant to lend to households, because Brazilian courts were biased in favour of borrowers. Brazil’s new Housing Finance System (SFH), offers households an opportunity to turn their higher incomes into mortgage pay-ments. SFH had experienced over the past few years, an increase in housing finance volumes, which wasn’t attained during re-garded SFH’s best years in early 1980’s. According to a Warnock & Warnock (2008) study, out of a stock of 54 million housing units, around 9.5 million of them were financed under the SFH, while most were produced by homeowners themselves. Although a small number, the amount of financed units were already high considering the country’s small mortgage market. The SFH’s resources are administered by Caixa Economica Federal (CEF). Medium and high-income families use the Cadernetas de Poupança (CP) or private savings accounts. The Fundo Garantia por Tempo de Servico (FGTS), which are employees’ month-ly private accounts, is used for low-income housing. In June 2012, the CEF announced the expansion of 30 to 35 years maximum terms of home financing. Interest rates were also re-duced from 9% to 8.85% for properties funded by the SFH. Depending on the level of relationship with Caixa, the rate could reach 7.8%. Those out of SFH, the rates were reduced from 10% to 9.9%, or may even reach 8.9%. Brazil’s mortgage market remains small at 3.8% of GDP in 2011, up from 1.4% in 2005. On the other hand, financial system cred-it for housing increased by five times from BRL 29 billion (US$ 14.1 billion) in 2005 to BRL 200 billion (US$ 97.7 billion) in 2011. In June 2012, financial system credit for housing expanded by 40.6% to BRL 235 billion (US$ 114.8 billion) from the same period last year. Benchmark rate is falling Brazil’s benchmark rate was once one of the world’s highest. But successful economic reforms over the past several years have pushed Selic, Brazil’s central bank benchmark rate, from nearly 30% in 1998 to 8.65% in August 2009. The government raised the rate several times to curb inflation from March 2010 to August 2011, reaching 12.42%. Unexpectedly, the central bank cut its key interest rate in September 2011 due to slowing global and domestic economic growth and has contin-ued to do so, reaching an all-time low of 8.07% in July 2012. The benchmark rate is likely to decline further to 7.25% by end of 2012. Declining rental yields Brazil’s continuously rising property prices has been pushing down rental yields. In Rio de Janeiro, where strongest price movement were witnessed, rental yields for apartments ranged from 4.03% to 5.36% in November 2011, according to the Global Property Guide, down from average yields of 7.8% in 2009. Housing deficit Brazil still has Latin America’s highest level of inequality, very visible in the favelas on the hilly outskirts of Rio de Janeiro and other cities. The underlying problem of housing scarcity remains, as is evident in the 8 million “housing deficit” in 2011, a climb from 6.4 million units in 2005. Of this, 90% belongs to the poorest income bracket. Brazilians, especially the poor, find housing unaffordable because of the high property prices. In São Paulo, around 62% of families find it expensive to own a house, based on a study by the Inter-American Development Bank (IADB). Home ownership is at 75%, with only about 14% of the 42 million housing stock rented. But around 85% of all homeowners live in low quality, self-built, single-room housing units. São Paulo’s metropolitan area has an estimated population of 19.8 million, based on the IBGE’s August 2011 estimate. Brazil’s 15 most populous metropolitan areas account for 37.35% of the total population. Favelas were named after the squatter settlements on the hill Morro da Favela, near the centre of Rio. It is estimated that about one-third of Rio’s population lives in favelas. The situation is the same in other major cities, such as Brasilia and São Paulo; perhaps 40% of these cities´ population lives in these squatter settlements. My House, My Life The housing program Minha Casa Minha Vida (My House, My Life), launched in March 2009, was one of the popular federal gov-ernment programs launched during former President Lula da Silva’s 8-year term. With an initially allocated budget of BRL 36 billion (US$ 17.55 billion), the program aimed to build 1 million houses during 2009 and 2010 for low income families, specifically those earning up to three times the national minimum salary. By end of 2010, 1,005,028 units had been contracted, according to CEF. The second stage of the program was officially launched in June 2011. It has a government budget allocation of BRL 72 billion (US$ 35.10 billion), and targets the construction of an additional 2 million houses by end-2014. By August 2012, one million hous-es had been built. President Rousseff announced that by 2014, her administration would have contracted 2.4 million houses, added to the one million houses contracted under the previous administration. Some changes were introduced in the latter stage such as the increase of price ceiling for units, end of height restrictions on apart-ment blocks and installation of solar panels. Of the total three million houses: 1.6 million homes are intended for families earning 0 -3 times the monthly minimum wage (earning between BRL 0 and BRL 1,635 a month) 1 million homes for families with salaries 3-6 times the monthly minimum wage (monthly income ranging from BRL 1,635 to BRL 3,270) 400,000 homes are allocated for families earning 6-10 times the monthly minimum wage (monthly wages between BRL 3,270 and BRL 5,450). Under the program, subsidized mortgage loans were extended to middle and lower income homebuyers through the state-owned bank, Caixa Economica Federal (CEF). Brazil Housing Market Risks and OpportuniƟes ConƟnued...
  26. 26. ConfidenƟal Northeast Brazil’s growing popularity Northeast Brazil, the poorest region in Brazil, is now catching up with the prosperous Southern Brazil. Though the Northeast re-gion remains the poorest, with 27.8% of the country’s total population but accounting for just 13.5% of GDP in 2011, the region has been the country’s star economic performer over the past decade. From 2000 to 2010, Northeast’s real GDP growth rose by an annual average of 4.2%, higher than the 3.6% annual growth for the rest of the country. The Northeast has become a popular holiday destination for wealthy Brazilians in recent years, thanks to its fine beaches. Now the area – particularly the cities of Natal, Recife and Fortaleza – benefits largely from the residential property boom and improved tourism infrastructure. Smaller towns with higher housing deficits are part of the Minha Casa, Minha Vida programme. Demand for rental accommodations has risen particularly in more desirable areas. Second-home buyers from the southern and central regions have also turned their attention to Northeast Brazil. Coastline proper-ties in Northeast Brazil are still a lot cheaper than those near São Paulo or Rio de Janeiro. “Right now, the northeast is one big building site,” says Federal Integration Minister Fernando Bezerra Coelho. The port and in-dustrial complex of Suape is being expanded. A petrochemical plant and a huge car factory are under construction. The govern-ment is expanding the Atlantic coastal highway. Over a hundred firms have moved in. The 2014 World Cup stadium is being con-structed in Natal. Granted that there is a marketing hype over the northeast, there are still risks involved in investing there. According to Exame Magazine, there were visible declines observed on overseas investment in Natal over the recent years, due to lack of capital availa-bility from Europe (which makes up most of foreign demand for the secondary market in the Northeast). Long term industrial sustainability is also questionable, since most states in the Northeast rely heavily on tourism, fisheries and agriculture. According to Ruban Selvanayagam, housing developer and investment advisor for the Fez Tá Pronto Construction System, the Northeast’s main problem, as well as Brazil’s, is inflation in the price of land, labour, and construction materials. Selvanayagam also points out that salaries in the region are mostly lower than average class D and E earnings of BRL 792 (US$ 386), the prime market of the Minha Casa, Minha Vida program. Modest recovery in 2012 The first year of Dilma Rousseff’s term in office was marked by an underwhelming economic performance, with a meagre growth rate of 2.7% in 2011, a steep decline from 2010’s 7.5% growth. Economists are pessimistic about an economic recovery this year, forecasting 1.7% GDP growth in 2012. The government, however, expects an economic rebound next year, and is targeting a 4.5% growth in 2013. New tax incentives including energy taxes and breaks on payroll are being considered, according to Finance Min-ister Guido Mantega. However Brazil surpassed United Kingdom as the sixth largest economy in the world with a Gross Domestic Product totalling US$ 2.469 trillion. Under president Lula da Silva Brazil’s economy grew by an average of 4.3% from 2004 to 2006 and then rose by an average of more than 5% during 2007 and 2008. Brazil wasn’t spared from the economic contraction in 2009, but it was minimized at 0.3%. Although Brazil’s economy is now sluggish, Rousseff remains popular among Brazilians, enjoying high approval ratings. In a survey by Datafolha last April, a research institute associated with the Folha de S. Paulo, Rousseff’s center-left government re-ceived a 62% rating, described as “excellent” or “good”. Brazil’s productivity shortfall The talk of Brazil’s boom conceals a fundamentally troubling situation – low productivity growth. As compared to China’s productivity gain of 808% over the last 30 years, Brazil’s productivity dropped by 15% during the same period. Over the past decade, salaries in Brazil have increased by 125%, but in contrast productivity increased by only 22%. Unemployment remains low despite Brazil’s slowing economy. In May 2012, unemployment was 5.8%, down from the previous year’s 6.4%, and down from 12% in 2003. Inflation has not been a major problem for Brazil this year. In contrast to last year’s 6.9% annual inflation, the CPI rose by 5.2% during the year to July 2012. The Banco Central do Brasil expects inflation to be 4.92% in 2012, down from 6.6% from the previ-ous year. This year, average nominal wages are expected to rise by 7.4%, higher than the IMF’s forecasted inflation of 5.2%, according to a study conducted by ECA International. Brazil Housing Market Risks and OpportuniƟes ConƟnued
  27. 27. ISOCRET & LINK GLOBAL ‐ Partnership
  28. 28. Link Global Holdings & IsoCret Do Brasil Strategic Alliance Link Global Holdings and IsoCret Do Brasil have entered into a Joint Venture agreement to manufacture and market housing units geared towards the Low to Mid-Market sectors in Brazil and South America. This is a 50% - 50% venture with both companies maintaining equal ownership rights. ISOCRET’s ICF based construction is certified and approved for usage in any type of Commercial or Residential structure as designed. Previously, ISOCRET has implemented this technology in Churches, Schools, Wal-Mart stores, and in both single family and multi-family homes. ISOCRET will manufacture and install the ICF blocks on the structures they build. The ICF blocks do not require specialty labor and is extremely simple to implement. To simplify the description of this technology, it can be likened to that of building structures with giant Lego-style bricks. There are several benefits to using ISOCRET’s ICF technology over traditional “Brick and Mortar” construction:  The materials are less expensive to produce  There are no special machinery or equipment needed at the construction site  Labor costs which are the most significant factor of any construction job are much less when utilizing ISOCRET’s products. This yields much higher rates of return  Once constructed, the structure is provides much greater energy efficiency when compared to traditional materials Building Green with ICFs Energy Savings Saving Energy is the world's top priority. The building sector accounts for 50% of energy use, in the heating and cooling of the building. ICF walls can make a differ-ence to the thermal envelope due to the combined effect of the continuous R-Value, the airtight construction and thermal mass mitigation. Resource Efficiency ICFs are made from Expanded Polystyrene (EPS), which was developed as a use for a waste-stream product in the development of oil. In other words, it was originally considered post-industrial recycled material. The styrene resins are transported to the local molding plant, where they are expanded to 28 times their size with the use of only air and moisture. And to top this off, EPS R-value does not diminish over time, saving many barrels of oil and tons of coal with the greatly reduced heating and cooling requirements. LEED Points to ICF CF construction can significantly contribute to USGBC LEED Energy Optimization credits. The toughest points with the greatest savings in life cycle costs. The US Green Building Council Leadership in Energy and Environmental Design (LEED) Green Building Rating System. LEED promotes a whole-building approach with performance criteria in five areas: sustainable site development, water savings, energy efficiency, materials selection and indoor environmental quality. IsoCret Do Brasil (ISOCRET), is an established Manufacturer and Contractor in Brazil with over 10 years experience selling it’s PROPRIETARY technology based Insulated Concrete Forms (ICF) building system. As a pioneer in the ICF industry ISOCRET retains an exclusive patent that is valid throughout the entire Country of Brazil. A copy of this agree-ment is available upon request.
  29. 29. In Brazil, there is only one company in the ICF/EPS arena that is already established and approved to do business under each of these government recognized financial and sustainable housing programs.
  30. 30. THE SCIENCE INSIDE ISOCRET ICF TECHNOLOGY 1 INTUITIVE ASSEMBLY Affectionately known as "giant Lego", the hollow blocks simply stack together. 2 CONTINUOUS FOAM INSULATION Two thick, continuous foam panels envelope the home or building to provide an effective wall assembly R-Value of R-25. (Higher R-values are available) 3 VARYING CAVITY WIDTHS Build walls with a steel-reinforced concrete core from 4" to 12" thick. (Even thicker walls can be built ) 4 LOW AIR INFILTRATION The wall assembly delivers up to 60% lower air infiltration than a traditionally built wall.1 This feature adds to the thermal performance of the foam insulation, and makes the home even more draft-free and comfortable. 5 5-DAY THERMAL LAG The concrete core also provides a 5-day thermal lag.2 The thermal performance of the home is enhanced yet again. 6 GREATER SAFETY AND PROTECTION Steel-reinforced concrete core also protects the home or building against fires, hurricanes and earthquakes. 7 EXCEPTIONAL SOUNDPROOFING The concrete core significantly reduces the penetration of outside noise. 8 TERMITE RESISTANCE Treated and protects against termites. Competitive Advantages of IsoCret ICF/EPS Based Construction Technology  IsoCret is the sole and exclusive provider of this technology through-out the country of Brazil. No other competitor has anything like it.  Meets or Exceeds Certification Requirements for: New Civil Construc-tions Regulations, the ASTM (EUA) norms, ABNT (Brazil), ISO 9002, and has been tested and approved by IPT-SP  Reinforced Concrete Based EPS technology  Allows Construction sites to be completed 80% faster  Provides a 40% savings on overall completion costs (compared to traditional construction practices). It does this, partly through a reduction in labor costs, and a reduction in materials costs.  Provides greater Energy Efficiency (higher thermal comfort)  Is more Acoustically Sound  A Sustainable Housing Practice  Has a PROVEN AND ESTBLISHED TRACK RECORD FOR GOVERNMENT LOAN GAURANTEES AND GOVERNMENT HOUSING ASSISTANCE PROGRAMS
  31. 31. ISOCRET ICF BUILDING BLOCK TECHNOLOGY IN RESIDENTIAL STRUCTURES ConfidenƟal
  32. 32. Cost ProjecƟons & Market Strategy
  33. 33. ConfidenƟal Cost ProjecƟons Associated with the development of 700 Low Market 400 sq Ō. Government Backed Spec‐Home Units‐* Cost ProjecƟons Associated with the development of 30 Mid‐Market 1,500 sq Ō homes Repayment Plan on $20MM USD Investment * - Current company estimates indicate that the IsoCret-LINK partnership can garner development contracts upwards of 10,000 low market 400’ sq ft Spec-Home units with adequate funding in place. Payment of the home is made within 45 days by the Federal Government of Brazil once the home is completed, inspected, and ready for “move in”. (Mid‐market sample floor plans on following page)
  34. 34. ConfidenƟal Model Home Sales ISOCRET will also purchase selected lots to build Model Homes for sale to the middle class market. Ad‐di Ɵonal lots will be purchased when the buyers from the model homes enter into a contract with ISOCRET and have funding in place. The Model Homes will be in the range of 1,491 sq Ō to 1,590 sq Ō. Model Home “A” Model Home “B”
  35. 35. ConfidenƟal Market Strategy  Quickly Build a Pipeline of Government Backed ResidenƟal Housing Units in the 12 Key Brazilian Markets  Align Ourselves with Brazilian Financial InsƟtuƟons  IdenƟfy a “Network of Strategic Manufacturing Partners” who we will off‐shoot our ConstrucƟon Projects  Implement a Quality Control Team of Inspectors to Safe Guard Branding  AŌer a successful ResidenƟal Pipeline has been built...Focus on Commercial ConstrucƟon OpportuniƟes in Brazil  Eventually, leverage IsoCret’s Proprietary Technology into a “Franchise Opportunity” within Brazil  Expand our Market Footprint into other Countries (Government Projects, UN Programs)  Develop DistribuƟon Channels for New Energy Efficient Product Offerings based on Market Needs to Support Improved Quality of Life (ie, Solar, Water Tanks, Air CondiƟoning, Appliances, etc.)  Develop New Homeowners Insurance Products for Roof, Appliance, and Natural Disaster conƟngencies. Strategic Manufacturing Partner LocaƟons Throughout Brazil Please go to the internet links below to see literally hundreds of examples of how IsoCret’s proprietary ICF technology is used in Residential, Commercial, and non-Profit applications. The YouTube Videos quickly demonstrate just how easily and economically without specialized equipment large scale construction projects can be developed. Additional Multimedia Links on IsoCret ICF Manufacturing: http://www.flickr.com/photos/isocretdobrasil http://www.youtube.com/isocretdobrasil www.isocret.com.br
  36. 36. Addendum
  37. 37. LINK Global Holdings and IsoCret Partnership Management Resumes Mr. Jose Reis, CEO, ISOCRET Mr. Jose Reis is the Chief Executive Officer of ISOCRET with 28 years of experience in North America and the Brazilian Market, propelling the Brand ISOCRET in Brazil. Mr. Reis has 10 years of experience in manufacturing and installing Insulated Concrete Forms (ICF). Mark Richard Dagel, Co-Chairman and President Mark Richard Dagel has for the past 25 years been a structured finance professional and a real estate construction and development expert, with an emphasis on how to finance difficult transac-tions. His specialization is in large-scale project and infrastructure developments, particularly in the developing world. He brings to IREO a wealth of international private sector experience and a strong interest in waste to energy, wind, and other alternate power strategies. He currently is the Co-Chairman and President of LINK Global Group, one of the fastest growing businesses in the UAE. With its enormous resources and professional set up it has been able to expand its interests in real estate, energy and commodities trading, power generation, construc-tion and oil and gas. LINK is currently building power plants throughout Brazil. LINK also repre-sents, as the investment bank, several pharmaceutical companies which it has firm committed capital to in excess of $100,000,000 USD. LINK acts as both financier as well as lead operator for most LINK projects by providing both the debt and equity to the transactions that it chooses to participate in. Since 1996, he has been a Senior Managing Director at Capital Mortgage, Incorporated where he helped run a 37 year old asset based lending company located in Atlanta, Georgia, which closed in an average year in excess of $350,000,000 in commercial real estate first mortgages. From 2008- 2012 he was Managing Director of Synergy Capital and Redevelopment Company, LLC, which was set up to act as the principal in adaptive reuse of older facilities throughout the USA. The company developed a turn-key concept that can take a distressed vacant building and turn it into perform-ing assets. It has now merged its operations within the LINK Group of companies. Since 2004, he has been Managing Director of Double D’s Trading Company, LLC, a company set up to provide equity and expertise within the real estate sector. Double D’s Trading Company has acted as a funding source to manufacture building materials in China (80 different lines of con-struction materials) as well as to provide development and financial expertise to the precious met-als mining industry on over three dozen mining sites throughout North America. His career highlights include being the principal in over one hundred real estate development and construction projects in which he has financed directly or indirectly in excess of $3 billion USD. In addition, he has donated tens of millions of dollars in products, services, expertise and capital to charity. In particular he played a major role in the construction of a 176 unit apartment complex in Canton Georgia that acts as the only battered women and children shelter of its kind. Other charitable activities include having designed and built a ranch for children of special needs; having donated tractor trailers full of books and computers to a local library system; having donated capi-tal, food and trailers full of Christmas toys for impoverished children; and having built several churches. Marcelo Alberto SA Soares, Administrative and Financial Director Mr. Soares has more than 20 years of experience in the areas of audit, controllership and financial leadership positions including responsibility for finance, accounting, human resources, internal and external audits, tax planning and cost controls. He has experience in corporate planning, mergers and acquisitions and project management of Su-permarkets, distribution centers, hyper markets, shopping centers and industrial buildings. Mr. Soares has raised funds via the capital markets and finance through BNDES, served as the Inter-national Director of "Oceans Of Constructora SA" (Chile). He has analyzed and prepared new business plans for companies. Mr. Paul A. Martins, Chief Technical Architect Mr. Martins has over 20 years of experience including four in Europe. His experience in Project Devel-opment / Management and Technical / Management plus his experience with project prefabrication and pre molded (baldrames, pillars, beams, mortar, walls armed) and in construction of concrete and steel. (homes and buildings). Mr. Martins experience in Construction Management (Planning, Budgets, Schedules, Supervisory Con-trol Supplies, Supplies, results) will be very valuable assisting the construction process with ISOCRET. He also served as the General Coordinator of the Consortium APTA / SETEPLA Gleba No 1 on the contract with the Company for Housing and Urban Development of the State of São Paulo (CDHU), regarding the re-urbanization of slums, urban settlements and new treatment areas risk re-lated to the PAC (Growth Assistance Programme) and the program "Minha Casa, Minha Vida" with ex-pected delivery of projects to 20,000 units by June 2014.
  38. 38. OrganizaƟonal Flow Chart ConfidenƟal
  39. 39. Reference Page: Brazil Central Bank hƩp://www.bcb.gov.br/?INDICATORS Global Finance hƩp://www.gfmag.com/gdp‐data‐country‐reports/311‐brazil‐gdp‐country‐report.html#axzz2UJEE24yd Credit Suisse hƩps://sponsorship.credit‐suisse.com/app/arƟcle/index.cfm?fuseacƟon=OpenArƟcle&aoid=370782&coid=280997&lang=en IMF hƩp://www.imf.org/external/pubs/Ō/scr/2012/cr12192.pdf Realitybiznews.com hƩp://realtybiznews.com/poor‐take‐on‐the‐rio‐development‐boom‐advanced‐olympic‐Ɵckets/98718290/ hƩp://realtybiznews.com/top‐internaƟonal‐real‐estate‐markets‐for‐invesƟng/98717936/ Global Property Guide hƩp://www.globalpropertyguide.com/LaƟn‐America/brazil/Price‐History FronƟer Strategy Group hƩp://blog.fronƟerstrategygroup.com/2013/04/emerging‐market‐view‐what‐our‐analysts‐are‐reading‐%e2%80%93‐4192013/ Economy Watch hƩp://www.economywatch.com/world_economy/the‐americas‐economy.html UN Habitat / UNEP hƩp://www.unhabitat.org/content.asp?cid=12189&caƟd=140&typeid=6 hƩp://www.unhabitat.org/content.asp?cid=11280&caƟd=140&typeid=6 hƩp://www.unep.org/Documents.MulƟlingual/Default.asp?DocumentID=296&ArƟcleID=4482&l=en hƩp://capacity4dev.ec.europa.eu/system/files/file/22/02/2013_‐_1241/sushi.pdf
  40. 40. For More Information Contact: Mark Richard Dagel Co-Chairman and President Link Global Holdings, LLC Direct: 404-402-6761 Fax: 888-909-4802 Skype: MRDLink Conference line: 218-844-8230 (903784#) Offices: Lausanne, New York, Mexico, Colombia, London, & Atlanta www.linkglobalholdings.com mdagel@linkglobalgrp.com

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