Competitive Advantages

BC Office Fund believes its competitive advantages include:

‘AAA’ and ‘A’ commercial real estate portfolio.

BC Office Fund is the largest real estate investment fund of corporate towers in Brazil in terms of shareholders’ equity, with high quality office buildings strategically located in commercial centers, shopping malls, avenues or streets with strong consumer traffic in cities such as São Paulo, Rio de Janeiro and the highest percentage of its lease revenues from BC Office Fund derives from rental contracts of class A and AAA buildings.

The properties below reflect the high-quality of BC Office Fund’s portfolio:

Management team of qualified executives with experience in the real estate industry.

The Investment Advisor and Fund Manager have vast experience in the Brazilian real estate industry, with a special focus on the commercial real estate segment. Both parties also have executives who are qualified and recognized in the finance industry. The Fund believes the additional experience of the fund manager and investment advisor executives enables to qualify a team of professionals capable of efficiently identifying acquisition, structured finance, management and sales opportunities for commercial real estate, thus, essentially contributing to BC Office Fund’s success and generation of value for its shareholders.

Ability to profit from BC Office Fund’s properties.

The Fund believes it can increase the profitability of a significant portion of its portfolio properties through lease renegotiations in the near future.

Own tax regime and attractive for investor.

FIIs (known locally as Fundo de Investimento Imobiliário or just FII) are subject to a special tax regime that exempts revenue distributed by them to individual investors resident in Brazil from payment of income tax, as long as the FIIs are pegged to property investments and meet certain legal requirements. FIIs further increase distributions to shareholders because they are exempt from taxes, such as the Contribution for the Program of Social Integration (Contribuição para o Programa de Integração Social), or PIS; the Contribution for the Financing of Social Security (Contribuição para o Financiamento da Seguridade Social), or COFINS; and the Social Contribution on Net Income (Contribuição Social sobre o Lucro Líquido), or CSLL. FIIs provide more predictable results than other investments and periodically distribute these results, generally on a monthly basis, making an investment in the Fund potentially more attractive than direct investments in companies that operate in the real estate industry.