Profile

CR2 Empreendimentos Imobiliários ("CR2" or "the Company") is one of the leading real estate developers in the Rio de Janeiro and São Paulo metropolitan areas. CR2 created and implemented our unique business model focused exclusively on real estate development based on project-specific partnerships controlled by the Company. Unlike many traditional builders and developers in Brazil, we are a pure real estate developer because we form partnerships for each project with the local contractors and builders, taking advantage of their specific expertise, which is necessary for the successful execution of each project.


By maintaining control of these partnerships, CR2 is able to actively manage the level of risk and liquidity by determining when or even whether development occurs, the speed of the development, and cost and pricing structure, and thereby optimize sales velocity and the return for the level of risks.


The Company believes that its model based on partnerships, which they control in the fragmented Brazilian real estate market fosters multiple development opportunities that enables to operate efficiently across the market—from high to low-end residential segments, to office buildings and shopping centers, varying the strategy according to the market conditions.


By forming project-specific partnerships, CR2 believes that it gains several advantages over traditional builders, which include the following:


  • Focus on the segments with the highest growth potential. The Company believes that it is well-positioned to benefit from the strong growth potential in the low-end and lower middle-end residential segments, the significant housing deficit within these segments, the expected continued decrease in interest rates and the favorable prospects for the Brazilian economy;
  • Ability to enter into numerous partnerships simultaneously, which opens the range of opportunities and diversifies product portfolio, spreading the risk exposure;
  • Reduced staff not only means lower fixed costs but also increased flexibility and higher margins;
  • The Company interests do not conflict with those of its partners because the role is to develop and manage real estate developments.


Last Update on September 16, 2013