Strategy and Competitive Advantages

Competitive Advantages

RNI competitive strengths include:

Experience in the Brazilian interior: We are one of the real estate developers best positioned to leverage the growth potential in cities in the up-country regions of the states of São Paulo and Minas Gerais and in the Central-Western region.

Our accumulated expertise in more than 26 years of operations gives us the necessary know-how for operating in the interior of Brazil and allowing us to develop projects customized to the profile of each location and client.

Project diversity: We offer a broad range of products enabling us to attend our various constituent markets. Our projects are divided into:

  • Brazilian Savings and Loan System (SBPE): The SBPE letter of credit uses proprietary resources to facilitate the acquisition of properties by our clients. In this case, the purchaser may hold multiple properties, there is no income limitation and financing can be through the Home Finance System or outside it. We use this model in the case of projects in the Stillo line, which caters for high and medium-income properties and those properties for the low-income segment, but not qualifying for the federal government’s Minha Casa Minha Vida program. In RNI’s case, this would include the Allegro, Green Club and Smart lines for example.
  • Minha Casa Minha Vida (MCMV): This is a Federal Government program that partially subsidizes the price of the property in accordance with income and client profile. Each city has a ceiling for these amounts and we always operate within this limit.
  • Urbanism: We develop areas in the form of residential urban subdivision projects. These are both planned open residential subdivision developments and closed condominiums with round the clock security and differentiated leisure facilities, the focus always being on comfort, convenience and practicality for those clients who choose a free life style concept. The projects make a point of providing for the needs of each householder, working into each project aspects, which make every house unique and special. These are projects with a privileged structure and location so ensuring a continual appreciation in the value of the property.

Strategic inventory: Our land inventory and purchase options have an estimated VGV of R$ 3.8 billion. Land is located in the more than 18 cities in the interior of Brazil, including the states of São Paulo, Minas Gerais, Mato Grosso, Mato Grosso do Sul, Goiás, Bahia and Santa Catarina.

Solid experience and reputation: We are part of the Rodobens Companies group, which has more than 68 years of experience and a solid reputation in the Brazilian market. The credibility of the Rodobens Companies has contributed to the formation of new strategic partners and to a perception of product reliability.

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Strategy

RNIs main business and financial strategies are:

Sustainable growth with a focus on returns and cash generation.

Geographic Positioning and Product Mix: We have a vast experience in projects located in the interior of Brazil. Our intention is to expand our operations in areas outside the major commercial centers, especially in the interior areas of São Paulo and Minas Gerais and medium sized cities in the Central-Western region. Competition is less in these regions, reflecting directly in land prices. Furthermore, these same regions have experienced above average growth in relation to the rest of the country.

Our intention is to consolidate our operations in these regions, focusing principally on the low, middle and upper-middle income brackets. Our projects offer quality, leisure, security and services in the form of integrated solutions, tailored to the specifics of each location and client profile.

Expansion of inventory and land in up-country regions: The sites in our land bank are a function of our capacity to develop attractive projects for our target market at affordable prices and at suitable margins of return. Our intention is to purchase areas for supporting our recovery in growth. With this in mind, we will harness our experience in the regions in which we operate as well as through the support of our partners to identify new business opportunities. Our strategy is to seek new areas through swaps, thus minimizing our cash exposure to the projects.

Financial Discipline and Cash Management: We will constantly endeavor to look for the most efficient financing alternatives to satisfy the need for resources for our projects, offering our clients competitive conditions for acquiring a property. In this light, we intend to maintain partnerships and long-term relationships with financial agents.

We are always reviewing opportunities for monetizing our assets. Our aim is to be a company with low financial leverage and a solid cash position.

We adopt a rigid policy of cost management, ensuring the best levels of efficiency for our operation. Our structures work on an integrated basis, thereby maximizing commercial efforts and shareholder returns.