Strategies and Competitive Advantages

Major partnerships with developers in the primary market.

In recent years, we have directed our efforts at increasing and expanding our relationships with developers from various stages of business development. We have built long-term partnerships with all of the listed developers, who account for approximately 1/3 of our revenue, and with over 600 unlisted developers.

Dedication and specialization in the sale of remaining properties.

One of the biggest challenges for developers is to sell the properties remaining after the launch period, when the advertising is no longer being carried out.

In these cases, Brasil Brokers’ partnership with our developers becomes essential. We have one of Brazil’s biggest and best operations for remaining properties, with a dedicated department and commercial structure that specializes in the sale of remaining properties, aimed at identifying good business opportunities. We conduct extensive research through our database and with customers, both inside and outside of our loyalty program, to identify potential buyers, while also adopting incentive policies for our sales forces in order to increase the results from these units.

Expansion of the secondary market.

We intend to expand our activities in the real estate resale segment for Used and Finished properties by extending and standardizing internal benchmarks such as the "connection ready" program, a pioneering program in the industry, created at one of our subsidiaries in Rio de Janeiro, which mobilizes multifunctional teams, trained to perform sales for the three segments of operation (launches, remaining and finished), leveraging the productivity of our teams. In addition, from the automatic or semi-automatic analysis of the large quantity of data available in our databases to determine patterns, which may then be utilized to obtain more precise results of sellers among the buyers of real estate developments, keeping in mind that the properties launched could potentially be the object of a future resale.

Expansion of Real Estate Financing

In addition to the technical and real estate advisory services provided to our buyers, we have started to earn commissions from real estate financing institutions for the promotion of real estate financing.

We believe that this is one of the greatest potentials of our business, given that it is when the sale of these units is finalized that our buyers are faced with the possibility of acquiring financing.

Scale and Leadership in Brazil.

Made up of 17 leading real estate companies in 8 states, the group has more than 7,000 highly qualified associate brokers. In 1Q18, more than 2.2 thousand properties were sold and total sales reached R$ 833 million.

Diversification of products offered.

Brasil Brokers is one of the largest and most complete real estate brokerage and consulting firm for developers and final consumers, at a range of economic levels, as well as being one of the main real estate financing development agencies in the country.

The main services provided are related to real estate sales, real estate feasibility studies for new projects, marketing consulting and planning for real estate developments, legal advisory services, real estate financing advisory services and lease management.

Personnel Management.

Made up of 17 leading real estate companies in 8 states, the group has more than 7,000 highly qualified associate brokers.

We value our associate brokers, we invest in their professional growth and productivity, and we compensate them based on their results. We prefer internal promotions to outside hires.

To ensure proper training and provide real opportunities for growth to its professionals, Brasil Brokers has become a true vocational school. In the last three years, we offered more than 10,000 hours in average of training to our sales force through classroom and online courses. Through this training, our personnel acquired expertise in legislation, negotiations, computer skills, Portuguese and financial mathematics, among others.

Technology and Innovation.

One of the biggest advantages of our sales forces is related to the use of tools that automate the customer contact functions. These tools aim to help create and maintain strong relationships with our clients, intelligently storing and interrelating information about their activities and interactions with the company. Brasil Brokers has one of the largest databases of potential buyers in Brazil, as well as advanced marketing tools to identify trends in the real estate markets in each region where we operate.

Business Model.

The real estate sector has significant growth opportunities as there is still a large repressed demand for housing in Brazil and mortgage loans account for a small portion of the country’s GDP.

The operating leverage model adopted by the Company is based on increasing sales in counterpart to fixed costs to promote and encourage its business and maximize returns to its partners. In addition, due to our operations’ low capital needs and high cash generation capacity, this business model is capable of sustainably creating value for its shareholders.

Operational and Management Model.

The significant capacity to plan, implement and operate real estate brokerage services is based on an operational model that emphasizes the management of personnel, processes and technology.

The deep understanding of the requirements and expectations of our customers in the geographic locations being addressed, the specialization of our portfolio of services, coupled with our mission of transforming the dream of home ownership into a reality with the provision of excellence real estate services, puts Brasil Brokers in a leadership position in the markets in which it operates.

The pursuit of excellence is supported by the application of an efficient Management Model that is globally applied, known as the Plan, Do, Check, Action (PDCA) cycle. The process is aimed at achieving three objectives: Customer Satisfaction, Profitability and Growth. The model assumes that, through standardization, we can ensure discipline and the successful completion of operational tasks, expanding the Company’s capacity to innovate, strive for ongoing improvements and always provide the highest productivity at the lowest cost.