Corporate Taxpayer's ID (CNPJ/MF): 29.780.061/0001-09
NOTICE TO THE MARKET
SÃO CARLOS ANNOUNCES ACQUISITION OF " DEN AS A" BUILDING AND
P AR T OF " DR. JOÃO URSULO RI BEI RO COUTI NHO" BUILDING IN RIO DE JANEIRO
São Carlos Empreendimentos e Participações SA ("São Carlos") hereby informs its shareholders and the market that on this date has signed Purchase and Sale Agreements with Itaú Unibanco Conglomerate, whereby São Carlos acquired the Denasa building and part of Dr. João Ursulo Ribeiro Coutinho bulding, both located at Praça Pio X, Centro, in the city and state of Rio de Janeiro. The total acquisition price is R$46.2 million, and was acquired in partnership, with a share of 50% for São Carlos and 50% for GP Real Estate and GPRE-FIP funds, real estate investment funds managed by GP Investments Ltd.
The acquisition consisted of 8 standard floors and the ground floor of the Dr. João Ursulo Ribeiro Coutinho building, totaling 4,800sq.mts of gross leasable area ("GLA"); and the entire Denasa building, with 2,898 sq.mts of GLA distributed in 11 standard floors, a ground floor, a mezzanine, a penthouse and an underground floor. The buildings are well located, side by side, with a view of the Candelária church, near the Uruguaiana subway station and around 2 km from Santos Dumont Airport.
The strategy is to develop a complete retrofit in the buildings with an estimated investment of R$26.2 million over 24 months.
Considering the buildings' location, we estimate the current market rent price at R$110/sq.m./month. On this date, São Carlos and the funds managed by GP Investments Ltd signed a 5-year lease
agreement with Banco Itaú for the branch located on the ground floor of the buildings.
The portfolio of São Carlos and its subsidiaries now comprises 60 properties with gross leasable area of 384,881sq.mts and market value estimated at approximately R$3.66 billion.
São Paulo, December 17, 2012