Equity International Announces New Stake in Brazilian Homebuilder

Equity International, the privately held investment company focused on real estate-related businesses operating outside of the United States, announced today the acquisition of approximately 20 million shares in Construtora Tenda S.A. (Bovespa:TEND3), a publicly traded Brazilian homebuilder focused exclusively on the affordable/entry-level segment. This transaction, through Equity International’s Fund IV, represents an approximate 5 percent ownership stake. Tenda marks Equity International’s fifth portfolio company investment in Brazil.

Headquartered in São Paulo, Tenda was founded in 1994 in Minas Gerais as a high-quality, low-cost homebuilder, solely dedicated to the affordable/entry-level housing segment. The Company is focused on the fastest-growing metropolitan regions in Brazil with the greatest housing deficits, and currently operates in 64 cities across 13 states. In October, Gafisa S.A. (NYSE:GFA)(Bovespa:GFSA3), another Equity International portfolio company, acquired a 60 percent majority ownership stake in Tenda through the merger of its Fit Residencial business unit with Tenda.

"Equity International is excited about the affordable homebuilding sector in Brazil as significant unmet demand, magnified by household formation, creates an extraordinary growth opportunity,” said Gary Garrabrant, chief executive officer of Equity International. "This transaction distinguishes Tenda as an Equity International portfolio company and we look forward to working directly with the Tenda management team to capitalize on this opportunity.”

Brazil has a large, youthful and growing population, with ongoing household formation and substantial demand for new housing. With a housing deficit estimated at approximately 7.2 million homes, the need is particularly acute at the affordable/entry level. Tenda is the only national homebuilder in Brazil that is fully focused on this market segment. In addition to its national presence and large land bank, the Company boasts a unique, dedicated in-house sales channel that differentiates it from other builders in the market: Tenda owns and operates more than 30 stand-alone retail centers, through which its 300+ person sales force is able to sell units across multiple Tenda projects from centralized locations, increasing the product choices and sites available to consumers. These centers also enable Tenda to initiate credit analysis and mortgage approval applications, simplifying the entire purchasing process for these first-time homebuyers.

"Equity International is recognized as a leading investor and builder of world-class companies, and we are proud that they have chosen to invest in Tenda,” said Carlos Trostli, chief executive officer of Tenda. "Tenda will benefit greatly from Equity International’s global experience, particularly in the affordable/entry-level homebuilding sector.”

Equity International will provide strategic direction and counsel to the Company in addition to tactical contributions. Thomas McDonald, Equity International’s chief strategic officer, will join the Tenda Board of Directors pending shareholder approval.

About Equity International

Equity International is a privately held investment company focused exclusively on real estate-related businesses operating outside of the United States. Founded in 1999 by Sam Zell and Gary Garrabrant, Equity International is recognized as a leading international investor and partner of choice with multi-dimensional capability. With $1.5 billion raised through a series of four funds and invested across 18 portfolio companies to-date, Equity International’s presence spans the globe and the real estate spectrum. Equity International is affiliated with Equity Group Investments, LLC, the investment company founded and led by Sam Zell, with a vast array of corporate and real estate interests. For more information, please visit www.equityinternational.com.