TCSA3 Tecnisa

Tecnisa S.A. is a Brazilian real estate developer primarily focused on the residential market, whose common shares are traded on B3 under the ticker TCSA3, in the Novo Mercado listing segment. The group’s origins date back to 1977, with the founding of Tecnisa Engenharia e Comércio Ltda. by Meyer Joseph Nigri in São Paulo, initially focused on engineering and civil construction. Over the following decades, the company established a growth trajectory based on the development of real estate projects and an integrated business model. In 2006, its corporate structure was reorganized with the creation of Tecnisa S.A. as a corporation (sociedade anônima) and the merger of Tecnisa Holding Ltda., concentrating the group’s real estate activities. In 2007, the company obtained its publicly held company registration with the CVM and carried out its initial public offering (IPO), with its shares listed on the then BM&FBOVESPA, now B3.

Since the IPO, Tecnisa has allocated funds raised in the capital markets to an expansion plan based on income-segment diversification and geographic expansion. In addition to strengthening its presence in the state of São Paulo, it began operating in markets such as Brasília and Curitiba, and in specific projects in states such as Amazonas, Bahia, Ceará, and Goiás, often through partnerships with local developers and builders. Throughout its history, the company has launched and delivered 272 projects, totaling more than 47 thousand units and 7.3 million square meters built, with accumulated Gross Sales Value (Valor Geral de Vendas – VGV) since 2007 of more than R$ 18 billion in nominal terms. At different times, the company’s capital has been reinforced by follow-on share offerings, used for land acquisitions, project development, and the rebalancing of its capital structure.

Tecnisa’s business model is structured as a holding company, operating through Special Purpose Entities (SPEs) and Joint Ventures under Silent Partnership Agreements (Sociedades em Conta de Participação – SCPs), which concentrate specific real estate projects. The company operates in an integrated manner in virtually all stages of development: land bank formation, feasibility analysis, project development, licensing, construction, sales, and post-sales. Revenue is generated mainly from the sale of developed properties and, to a lesser extent, from providing construction services and real estate sales and advisory services. In 2022, 2023, and 2024, most of its net operating revenue was associated with property sales, accounting for more than 95% of net revenue in those periods, reinforcing Tecnisa’s predominantly development-focused profile.

From a portfolio standpoint, Tecnisa operates across multiple product segments, including affordable residential, middle-income, high-income, and commercial projects. Historically, the company has pursued differentiation through product concepts and engineering solutions, and in 2009 it created the Tecnisa Flex brand, focused on middle and lower-middle income segments, with residential units in more affordable price ranges. In 2024, it marked its structured return to the affordable segment with the launch of the Tencasa brand, aimed at projects under the Minha Casa Minha Vida program, in partnership with Plano & Plano, in which Tencasa holds a minority stake in the projects. Despite its diversified product lines, the company’s most recent launches are concentrated in middle- to high-income residential projects in the São Paulo Metropolitan Area, maintaining its focus on segments that best match its accumulated expertise.

Geographically, Tecnisa’s operations are currently heavily concentrated in the São Paulo real estate market, especially in the São Paulo Metropolitan Area, which management considers the country’s most dynamic market in terms of liquidity and demand depth. After an expansion cycle into other states between the IPO and the mid-2010s, the company revised its strategy during the real estate sector downturn and redefined its focus on São Paulo and a few selected markets, prioritizing established neighborhoods and projects with more predictable sales. Its operations remain restricted to Brazil, with no development activities or revenue generation abroad, and its results are influenced by conditions in the Brazilian real estate market, domestic interest rates, and the availability of housing credit.

One of the milestones in Tecnisa’s recent history is the development of the master-planned neighborhood Jardim das Perdizes, in the western zone of the city of São Paulo, conceived as a mixed-use project with residential towers, an office building, and a convenience center. In 2011, the company obtained approval to carry out infrastructure works, and in 2013 the first projects were launched. By the end of 2024, 19 towers had been launched, 13 of which already completed, totaling a Gross Sales Value of around R$ 4.6 billion, 2,933 units, and more than 426 thousand square meters of private area. The project is developed through specific companies, in which Tecnisa holds a majority stake via Windsor Investimentos Imobiliários Ltda., in a significant partnership with the Hines group, which holds a substantial stake in the companies responsible for the master-planned neighborhood.

On the operating front, Tecnisa manages the full real estate development cycle. The process begins with land prospecting and acquisition, which can be carried out with the company’s own funds, financing, or through cash and non-cash swaps, reducing the need for its own capital and cash exposure. The company conducts market studies, documentation analysis, and technical, financial, and regulatory feasibility studies before finalizing the acquisition. Projects are developed in partnership with architects and marketing professionals, especially for middle- and high-end projects, with attention to product features, materials, and customization. In construction, Tecnisa acts as construction manager, hiring contractors for labor-intensive execution, while maintaining its own team for specific functions such as electrical and plumbing installations, and overseeing schedules, costs, and quality standards.

Tecnisa’s operations are subject to a broad set of urban, environmental, and construction regulations. Each project depends on approvals from municipalities regarding land use and occupancy, issuance of construction permits and occupancy permits (habite-se), as well as environmental licensing when applicable, in accordance with federal legislation and CONAMA rules, as well as state and municipal laws. Projects with greater potential impact may require multi-stage licenses and specific studies, such as an Environmental Impact Study (Estudo de Impacto Ambiental) or Neighborhood Impact Study (Estudo de Impacto de Vizinhança). The company states that, in its day-to-day operations, it maintains close relations with public agencies to adapt projects to legal requirements, including authorizations for vegetation management, the handling of potentially contaminated areas, and compliance with solid waste regulations. In São Paulo, it adopts procedures in line with CETESB guidelines for soil contamination assessment and the issuance of environmental commitment terms when tree management is required.

From an environmental, social, and governance (ESG) perspective, Tecnisa incorporates efficiency and sustainability initiatives mainly into its projects. At Jardim das Perdizes, it implemented urban drainage solutions with underground facilities for stormwater management, a greenhouse gas emissions inventory during the infrastructure phase, and the adoption of technologies for energy conservation and rational water use. The project has received certifications such as Procel Edifica, LEED, and AQUA – Bairros, reflecting requirements related to energy performance, waste management, and environmental quality. On its construction sites, the company reports practices aimed at reducing toxic inputs, using rainwater where feasible, ensuring proper disposal of construction waste, and controlling emissions. In corporate governance, its listing on B3’s Novo Mercado requires high standards of transparency and a share capital structure composed of common shares, placing Tecnisa, traded under TCSA3, among the group of companies focused on good governance practices in the Brazilian capital markets.