Glossary

Glossary

Abecip: Brazilian Association of Real Estate Loans and Savings Companies.

Trust Sale: The legal right of the creditor, also known as the trustee, as well as the debtor (trustor). It is a type of guarantee offered in real estate financing, whereby the creditor transfers the real estate unit to the creditor as collateral for outstanding debt. The trustor holds the property’s direct ownership and detinue, and the trustee has the right to receive interest on the loan and holds the property’s indirect ownership, thus allowing for repossession in case of default.

Private Area: The property area over which the proprietor has private and exclusive rights, excluding the property’s internal walls.

Useful Area: The apartment’s carpet area added to the balcony area.

Equivalent Area: One room’s area in relation to another; used for normalizing the costs of different rooms.

BM&FBovespa: São Paulo Stock Exchange (Bolsa de Valores de São Paulo).

Built-to-Suit: Customized construction

Cash burn: net debt fluctuation

CCI: Real Estate Credit Bill, a security represented by real estate credits.

CDI: Interbank Deposit Rate.

CEF: Caixa Econômica Federal (Brazilian Bank).

CRI: Certificate of Real Estate Receivables, a nominative credit security that can be freely traded, is backed by real estate credits and constitutes a payment commitment in cash. It is governed by Law no. 10,931 of August 2, 2004, and subsequent amendments.

CVM: The Brazilian Securities Commission (Comissão de Valores Mobiliários).

EBITDA: EBITDA means income before net financial expenses, income and social contribution taxes, depreciation and amortization, and non-operating results.

EMBRAESP: Brazilian Company of Assets Research.

Guarantee: financial obligation undertaken by a guarantor in order to ensure the creditor that the debt will be paid in the event the debtor defaults or does not comply with his obligations.

Real Guarantee: Guarantee constituted by encumbrance over a specific real estate property of the debtor.

Restriction: An act which stops a property from being negotiated at the Real Estate Registry Office, preventing it from being sold or disposed of.

Occupancy Permit: Authorization issued by the municipal government so that a real estate property, which has been recently built or remodeled, can be occupied. The permit is only issued after the real estate property has been inspected by construction inspectors (who compare the actual construction with the approved project proposal) and public service inspectors (fire service, power, water and sewage companies).

Mortgage: A type of guarantee given by the debtor to the creditor in real estate financing. In this type of financing, the creditor owns the real estate property until the debt is fully paid by the debtor.

IFRS: International Financial Reporting Standards.

IGP-M: Brazil’s General Market Price Index calculated every month by Fundação Getúlio Vargas (FGV)

INCC (National Construction Cost Index): A national economic indicator that measures [the fluctuation of] home construction costs.

IPCA: Consumer Price Index calculated by IBGE.

Land bank: Land acquired by Viver and its subsidiaries for development and construction of real estate projects and/or allotments.

Project Specifications: A document outlining the project and specifying the building’s finishings, in accordance with the model prepared by the Brazilian National Standards Organization (ABNT).

Refinance: The value that will be financed by a bank for the real estate purchaser, originally financed by its own incorporation, after the occupancy permit of the undertaking.

RI: Registration of the Condominium Plan.

Sinduscon-SP: São Paulo State Construction Industry Union.

SFH: Real Estate Financing System. Created on August 12, 1964 by law number 4,320 to capture resources for the housing area and finance individual house construction.

SPE(s): Specified Purpose Entity

Mixed Use: Projects that bring together two or more real estate segments within one development.

Reference Tax: Reference tax for savings account adjustments as well as several contracts and debts, including real estate financing. It is defined monthly by the Central Bank according to the average profits of bank’s investments.

GVS: General value of sales is the actual sales price of all the units developed by Viver.

Sales Speed: Speed of sales in certain period calculated by: Pre-Sales/(Initial Inventory + Launches)