Asking Lease Prices dropped by 3.2%

Q2 212 OFFICES RIO DE JANEIRO MARKET REPORT OFFICES OFFICE RESEARCH REPORT - CLASS A+ AND A Asking Lease Prices dropped by 3.2% ECONOMIC SCENARIO Economic Indexes Previous Quarter Current Quarter PIB 1,9% 2,5%* IPCA 1,% 1,1% IGP-M,6% 2,5% Exchange Rate (R$/US$) 1,82 2,1 Unemployment Rate (RJ IBGE) 5,7% 5,2% *Market Expectation The high end corporate market shows signs of change on behavior partly explained by the consecutive increase of lease and new inventory. The available area increased by 2.5% compared to last quarter and should gradually grow until the end of year. Reflexes of this new scenario are seen in the decrease on absorption speed, which creates a negative pressure on prices. AVAILABLE AREA X AVERAGE ASKING LEASE PRICE According to the Quarterly Inflation Report published by Central Bank, the government revised the projection of growth for Brazilian Gross Domestic Product (GDP) on 212 from 3.5% to 2.5%. The revision occurred due to the uncertainty of the impact of the international crisis at the level of the internal activity and the current precaution in the economic condition. According to the Regional Report from Central Bank, the economic activity of Rio de Janeiro State did not present any growth in comparison to the previous quarter due to negative results of industry and the recede of retail business. To confirm the precaution scenario, the survey on expectations of construction materials published by ABRAMAT (Associação Brasileira da Indústria de Materiais de Construção), dropped by 4% on medium term intent to invest that ended in 71%. Concludes that the drawn in rhythm of Rio de Janeiro economy activity during the second quarter, led the government to adopt a set of economic policies to stimulate the activity level, which may support the economic recovery of State within the following months. MARKET OVERVIEW CLASS A+ AND A MARKET OVERVIEW VACANCY RATE NET ABSORPTION NEW INVENTORY PRICES Q1 212 Q2 212 sqm R$ 12, 1, 8, 6, 4, 2, 119.5 38,677 Q2 21 Available Area (sqm) 123. 2,965 Q4 21 128. 38,22 Q2 211 158. 16,274 Q4 211 174.5 166.5 98,33 1,52 Q1 212 Q2 212 Average Asking Lease Price (R$/sqm/month) 18. 17. 16. 15. 14. 13. 12. 11. 1. The properties delivered on the first quarter were partially absorbed. One of the appointed reasons is the frequency that lease prices are increasing, being above the historical average of market. An example of this situation is the region of Leblon/Ipanema which has as average asking prices of R$ 211.5 sqm/month against R$ 25./sqm/month asked for the last property delivered in the region (R3X Corporate Leblon), price 18% higher. In the second quarter a low reduction of prices was verified and explained, partially, by the adjustment of supply in comparison to the demand. With the delivery of new buildings, the prices should stabilize until the end of the year. www.colliers.com.br

region has the highest number of buildings under construction and should present an increase of prices due to the quality of new inventory and the investment in infrastructure performed in the region as well. The region currently has over half the licenses for new constructions granted by the Municipality (1.3 million square meters considering office and residential market). On the other hand, the Downtown region has its demand mainly by retrofits. One of challenges of recently retrofitted properties is the lack of private parking spaces. High quality properties such as Galeria Sulamerica, Marques do Reis and Rio Branco 115 do not have parking spaces. The lack of this feature is an aggravating at Downtown, attested by the high prices asked by unreserved parking spaces, which can reach up to R$ 75/month. Aligned with a real estate trend and with the objective of fomenting the green market, the Municipality of Rio de Janeiro published the project for creating a law that provides tax incentives to buildings with Green Building certificate. This project determines the creation of Qualiverde and Total Qualiverde stamps (which will be granted to projects after a classification per points) which proposes the reduction of taxes of sustainable buildings, meaning buildings that adopt construction methods less aggressive to environment, economy technologies and efficiency in the usage of water and energy. The expectation is that this law becomes enforceable this year. The three lands (Praia Formosa, of 116,125 (sqm), Usina do Asfalto, of 14.63 sqm and Patio da Maritima, with 23,89 sqm) already have projects for new developments. The first two will have a hotel, a convention center and media and arbitration center. The third one will have a commercial property to be built by developer Tishman Speyer, partner of the fund. Renovations to be performed in the region: Venezuela 43 Developer: São Carlos Empreendimentos e Participações Location: Av. Venezuela, 43 Former building of data processing of Banerj Developer: Pylos Brasil Location: Rua do Proposito, 13 PORTO MARAVILHA PROJECT The first phase of the revitalization of the port zone of Rio de Janeiro that included the urbanization works of the Morro da Conceição and the streets close to Praca Maua (Venezuela, Sacadura Cabral, Barao de Tefé, Camerino and Rodrigues Alves) was finalized. According to the data released by the Municipalit y of Rio, R$ 136 million were invested in public resources for the improvement of sidewalks, public lightening system and water, sewerage, gas and draining systems. The second phase of the Porto Maravilha includes the construction of 11 km of new roads, 4% of the Binario Tunnel, 15% of the Via Expressa Tunnel, 4% of the structure of the Museu do Amanha (museum), demolition of the Perimetral elevated highway and the conclusion of several stages, such as: Saude Tunnel (6 meters), Tunnel of the Federal Railroad (314 meters), in and out highways of the Gasometro Highway, Morro do Pinto reservoir and Cdurp headquarters. The connection of the lands Praia Formosa, Usina do Asfalto and Patio da Maritima to the Fundo de Investimento Imobiliario da Regiao do Porto (FIIRP) guaranteed the remittance of R$ 1 billion to the public intervention called Operacao Urbana Porto Maravilha. Properties under construction: Fomer building of Xerox Brasil Developers: n/a Location: Av. Rodrigues Alves, 261 Alfa Corporate Developer: Concal Location: Rua Francisco Eugenio Port Corporate Tower Developer: Tishman Speyer Location: Av. Rio de Janeiro Source: CDURP - Companhia de Desenvolvimento Urbano da Região do Porto do Rio de Janeiro P. 2 COLLIERS INTERNATIONAL

VACANCY - > VACANCY RATE REMAINS STABLE IN THE 2 nd QUARTER The vacancy rate for the 2nd quarter is of 1.4% against 1.1% recorded in the previous term. On there was an increase in the vacancy from 9.2% to 12.9% due to the devolution of an area in the buildings Cosmopolitan WorkStyle, Island Personal Offices, Le Monde Office Toronto 2 e 3 and Rio Office Park Building 5. Copacabana and regions remained with no available area. EXISTING INVENTORY X NET ABSORPTION X VACANCY RATE (%) COMPARISON OF THE VACANCY RATE (%) TO THE PREVIOUS QUARTER thousand sqm % 1, 952 971 971 18. 8 6 4 2 647 647 1.9 Q2 29 15 Existing Inventory (thousand sqm).581 Q4 29 744 5.2 Q2 21 78 749 2.8 Q4 21 18 831 4.6 Q2 211 62 Net Absorption (thousand sqm) 11.2 Q4 21 53 1.1 Q1 212 32 1.4 Q2 212 32 16. 14. 12. 1. 8. 6. 4. 2.. Vacancy Rate (%) REGION Q1 212 Q2 212 INVENTORY BARRA DA TIJUCA 9.2 % 12.9 % BOTAFOGO 1.5 %.5 % CENTRO 12. % 1.2 % COPACABANA. %. % FLAMENGO. %. % LEBLON / IPANEMA 26.3 % 25.9 % MEASURER INVENTORY Less than 1, sqm 1,1 sqm - 5, sqm 5,1 sqm - 1, sqm 1,1 sqm - 4, sqm Greater than 4,1 sqm Downtown region recorded 1.2% vacancy justified by the availability in the developments: Galeria Building, Rio Office Tower, Marques dos Reis and Porto Brasilis, all with more than 2,8 sqm available. VACANCY RATE (%) X INVENTORY PER REGION (sqm) 5, 4, 3, 2, 1, sqm % 34,98 12.9% 478,28 1.2% 92,993.%.%.5% 21,377 28,661 8,4 Copacabana Existing Inventory (sqm) Vacancy Rate (%) 25.9% Leblon/Ipanema 3. 25. 2. Leblon/Ipanema region have 25.9% vacancy rate and remains with the highest vacancy rate within the regions researched by Colliers. This availability is currently concentrated in three properties. region went from a vacancy rate of 1.5% to.5% due to the lease of 53 sqm in the Empresarial Mourisco Torre Pão de Açúcar. 15. 1. 5.. ABSORPTION > QUARTERLY ABSORPTION IN RIO DE JANEIRO IS THE LOWEST SINCE 29. The quarterly net absorption of 14,847 sqm represents a decrease of 53% in comparison to the previous quarter. ABSORPTION GROWING - SQM Q4 29 8,959 Q2 21 77,769 Q4 21 2, Q2 211 61,955 Q4 211 53,45 Q1 212 32,214 Q2 212 14,847 Downtown region absorbed the highest amount of square meters due to the occupancy of 1,545 sqm on Porto Brasilis, Marques dos Reis and Galeria Sul America buildings. Companies of the segments of oil and gas, port and civil construction occupied the respective areas. In absorption occurred in the buildings Peninsula Corporate, O2 Corporate & Offices, Empresarial Barra Shopping and C.E Mario Henrique Simonsen. COLLIERS INTERNATIONAL P. 3

Downtown region absorbed the highest amount of square meters due to the occupancy of 1,545 sqm on Porto Brasilis, Marques dos Reis and Galeria Sul America buildings. Companies of the segments of oil and gas, port and civil construction occupied the respective areas. GROWTH OF AVERAGE LEASING PRICE R$/SQM/MONTH Q4 29 14.5 Q2 21 119.5 Q4 21 123. Q2 211 128. Q4 211 158. Q1 212 174.5 Q2 212 169. Q2 ABSORPTION PER REGION (sqm) sqm 12, 1,545 1, 8, 6, In some buildings the difference between the initial asking price and the final price range from 1% to 15% for 1, sqm and until 2% for areas greater than 2, sqm. Some landowners may grant free rent of 6 days for 1-year lease agreements. MINIMUM AND MAXIMUM ASKING LEASE PRICES (R$/sqm/MONTH) 28, 4, 2, 3,295 9 Copacobana 17 Leblon/Ipanema 12, 51,5 197, 18, 17, 115, 14, 12, 2, 16, 25, Due to the current scenario, it s possible to affirm that the increasing of prices influenced the reduction on the absorption speed in corporate office market. Copacabana Leblon/Ipanema PARTIAL CUMULATED ABSORPTION CURRENT QUARTER X SAME PERIOD IN PREVIOUS YEARS (sqm) 77.769 The maximum asking lease price was R$ 28. sqm/month in the Leblon/ Ipanema region at the Exclusivity Business Center. The minimum asked price remains in in the development Island Personal Offices (R$ 51.5 sqm/month). 61.955 47.61 COMPARISON OF AVERAGE ASKING LEASE PRICES PER REGION (R$/sqm/MONTH) Q2 21 Q2 211 Q2 212 Q1 212 PRICES > REDUCTION IN THE AVERAGE ASKING LEASE PRICES SHOWS A CHANGE IN MARKET BEHAVIOR. Barra da Tijuca 117.5 192.25 137. Copacabana 16. Q2 211 18. Leblon/ Ipanema 26.5 Average general 174,5 The average asking lease prices dropped by 3.2% and ended the quarter with R$ 169. sqm/month. The decrease is the reflex of market sensitivity in comparison to the prices practiced during the previous quarters. Barra da Tijuca 111. 197. 138. Copacabana 13. 18. Leblon/ Ipanema 258.5 Average general 169, Note: Asking price for Copacabana was estimated by Management Company if there available area, since this area is compounded just by Atlantica Business Center building. In a comparison with the buildings that recorded highest asking leasing prices since 28 it is verified that the buildings in the Leblon/Ipanema region leaded the ranking: P. 4 COLLIERS INTERNATIONAL

28 Leblon Corporate (R$ 125./sqm/month) 29 Leblon Corporate (R$ 224.5/sqm/month) 21 Leblon Corporate (R$ 224.5/sqm/month) 211 Offices Shopping Leblon (R$ 266./sqm/month) 212 Exclusivity Business Center (R$ 28./sqm/month) NEW INVENTORY > POSTPONEMENT IN CONSTRUCTION BUILDINGS MAY ALTER THE VACANCY RATE PROJECTION. In this quarter there was no new inventory due to the postponement of some projects. The third quarter should receive the highest amount of square meters of 212 in reason of Empresarial Senado building. The estimate is that until the 4th quarter 2 thousand sqm were delivered, totalizing 241 thousand sqm in 212. The annual net absorption may vary between 18 thousand and 23 thousand sqm and the vacancy rate tend to stabilize between 8% and 1%. ESTIMATED DELIVERIES FOR FOLLOWING QUARTER: Via Comfort Working Total Leasable Area: 9,266 sqm Developer: CHL Construtora Banco de Minas (Retrofit) Downtown Total Leasable Area: 3,981 sqm Developer: Opportunity Empresarial Senado Downtown Total Leasable Area: 17,165 sqm Developer: WTorre TRANSPORTATION INFRASTRUCTURE The first section of BRT (Bus Rapid Transit) in the West Zone of Rio de Janeiro was inaugurated at the end of quarter. This section connects the neighborhood of Santa Cruz to Terminal Alvorada in with 4 km extension and 35 stops. The conclusion of the project is foreseen for the end of second quarter and will have 56 km of express corridors with 64 stations connecting Barra da Tijuca to the Campo Grande hill. The project includes the construction of a tunnel with 1.1 thousand meters extension on Grota Funda connecting Recreio dos Bandeirantes to Guaratiba with a R$ 9 million cost. Transoeste makes part of the investment in urban transportation of Rio de Janeiro, which includes another three BRTs: Transcarioca, Transolimpica and TransBrasil. In total there will be 14 kilometers of express corridors until 216. Phase inaugurated this quarter: Presidente Business Center Downtown Total Leasable Area: 4,8 sqm Developer: Independencia Venezuela 43 (Renovation) Porto Maravilha Total Leasable Area: 6, sqm Developer: São Carlos Empreendimentos e Participações Source: Municipality of Rio de Janeiro COLLIERS INTERNATIONAL P. 5

DELIVERIES ON 212 (sqm) Q4 32,657 Q3 167,212 Q2 Q1 4,958 5, 1, 15, 2, Leblon / Ipanema Porto Maravilha SCENARIO PROJECTED FOR THE END OF 212 sqm % 1,6, 14 1,4, 1,2, 1,, 8, 6, 952,276 11.2% 1,182,159 9.6% 12 1 8 6 4, 2, 115,44 227,352 4 2 Inventory (sqm) 211 212* Net Absorption (sqm) Vacancy Rate (%) TRENDS FOR THE END OF 212 NEW INVENTORY Delivery of 2 thousand sqm, mainly in Downtown and Barra da Tijuca regions. NET ABSORPTION Absorption tend to stay between 18-23 thousand sqm. VACANCY RATE > SALE OF LEBLON BUILDING Brazilian Mortgages Companhia Hipotecaria announced the sale of its stake at Leblon Building with 1,249 sqm of leasable area for the amount of R$ 36,565,. (thirty six million, five hundred and sixty five thousand reais). According to the public release this amount represents an 82% appreciation when compared to the acquisition price in July 28. Variation between 8% and 1% AVERAGE ASKING LEASE PRICE Tend to stabilize with slight increase due to the prices practices by the buildings that will be delivered throughout the year. > PUBLIC OFFERING BM REAL ESTATE FUND GALERIA BUILDING The BM Edifício Galeria fund will be managed by Brazilian Mortgages and after the public offering term these quotas will be traded in the Stock Market as shares. Colliers estimates that the quotaholder s yield may be over 16% after ten years. P. 6 COLLIERS INTERNATIONAL

STATISTICS CLASS A+ AND A CORPORATE BUILDINGS Region # Properties Existing Inventory (sqm) Vacancy Rate Q2 212 Vacancy Rate Q1 212 Available Leasable Area (sqm) Absorption (sqm) Average Asking Lease Price (R$/sqm/month) Average Asking Lease Price (US$/sqm/month) 2 34,98 12.9% 9.2% 43,985 3,295 111. 55.2 5 92,993.5% 1.5% 53 9 197. 98. 2 478,28 1.2% 12.% 48,612 1,545 138. 68.7 Copacabana 1 8,4 - - - - 13. 64.7 1 21,377 - - - - 18. 89.6 Leblon/Ipanema 6 28,661 25.9% 26.3% 7,419 17 258.5 128.6 Total General 53 97,62 1.4% 1.1% 1,52 14,847 169. 84.1 EXCHANGE RATE: USD = R$ 2.1 MAP OVERVIEW BARRA DA TIJUCA Existing Inventory: 478,28 sqm Net Absorption: 1,545 sqm Vacancy Rate: 1.2% Average Asking Lease Price: R$ 138./sqm/month PORTO CENTRO Existing Inventory: 349,59 sqm Net Absorption: 3,418 sqm Vacancy Rate: 12.6% Average Asking Lease Price: R$ 111./sqm/month Existing Inventory: 21,377 sqm Net Absorption: sqm Vacancy Rate: % Average Asking Lease Price: R$ 18./sqm/month FLAMENGO Existing Inventory: 92,993 sqm Net Absorption: 9 sqm Vacancy Rate:.5% Average Asking Lease Price: R$ 18./sqm/month BOTAFOGO Existing Inventory: 8,4 sqm Net Absorption: sqm Vacancy Rate: % Average Asking Lease Price: R$ 13./sqm/month COPACABANA IPANEMA / LEBLON Existing Inventory: 28,661 sqm Net Absorption: 17 sqm Vacancy Rate: 25.9% Average Asking Lease Price: R$ 258.5/sqm/month COLLIERS INTERNATIONAL P. 7

REAL ESTATE MARKET VOCABULARY. Absorption: Amount of sqm occupied in the previous period. Development category: Real estate properties are classified as A+, A, B and C. Stock / Inventory: Amount of usable constructed area in square meters. Vacancy Rate: Ratio between area available area and total area. Free Ceilings Height: Space between the finished flooring and the 1st structure ceiling interference. Build-to-Suit: Customized construction Colliers International More than 52 offices in 62 countries in 6 continents USA: 147 Canada: 37 LATAM: 19 Asia: 36 ANZ:165 EMEA: 118 US$ 1.8 billion in annual revenue More than 116.1 million sqm under management More than 12,3 profissionals COLLIERS INTERNATIONAL BRAZIL REAL ESTATE CONSULTANCY FOR INDUSTRIAL, OFFICE, RETAIL, LAND, RURAL, HOTELS, HOSPITALS AND EDUCATIONAL INSTITUTIONS Real Estate Investments Tenant and Landlord Representation - Leasing, Acquisition and Sale Advisory and Disposals for real estate assets and/or portfolios Build-to-Suit and Sale & Leaseback Operations Lease Administration and Property Management Real Estate Valuation for Leasing, Acquisition, Sale and Guarantee Market and Technical-Financial studies, Highest and Best use studies Advisory for Investment Funds and Private Investors Green Consulting for LEED certification CONTACTS São Paulo R. Olimpíadas, 25-1 andar 4551- São Paulo SP TEL +55 11 3323 Rio de Janeiro Av. Almirante Barroso, 63 231-3 Rio de Janeiro RJ TEL +55 21 2524 4242 Recife Av.Gov. Agamenom Magalhães, 4.575 57-16 Recife PE TEL +55 81 337 2222 Fortaleza Av. Dom Luis, 87-2 andar 616-23 Fortaleza CE TEL +55 11 8171 2727 More information: RESEARCH AND INTELLIGENCE MARKET research@colliers.com.br OFFICES RJ office.rj@colliers.com.br Accelerating success. P. 8 COLLIERS INTERNATIONAL www.colliers.com.br