COMPANY DESCRIPTION
Tenda was a publicly traded Brazilian homebuilder focused exclusively on the affordable/entry-level segment in Brazil. Tenda represented as an opportunity to enter the affordable/entry-level housing sector, which is characterized by significant unmet demand, through a leading platform at an attractive valuation.  In March 2009, EI acquired a block of shares directly from the founding shareholders. In February 2010, Gafisa (NYSE:GFA; Bovesps:GFSA3), a leading diversified Brazilian homebuilder, completed the acquisition of 100% of Tenda’s shares as a means of expanding its activities in the affordable housing sector. As a result, EI’s interest in Tenda was converted into Gafisa common shares which were subsequently monetized through a series of open market sales in 2010.

MARKET OVERVIEW
The housing industry is one of Brazil’s most compelling sectors, underpinned by an unmet demand of 7 million homes, centered in the affordable and middle-income markets. This shortfall has upward pressure generated by a youthful population and a household formation rate exceeding the production of homes by a fragmented industry. Brazil’s expanding economy has propelled job and income growth which, combined with increasing access to mortgage financing, has enhanced affordability. Strong interest from the Brazilian government as well as Brazilian and international banks suggests that access to capital and affordability will improve for an increasing range of homebuyers. In 2009, the Brazilian government launched the Minha Casa Minha Vida program to address the affordable housing deficit by facilitating the construction and purchase of 1 million new homes for entry-level and middle-income buyers by the end of 2010, with similarly aggressive goals for future years.