- Projects started by Gafisa’s low-income housing unit, Construtora Tenda, before the restructuring began in 2011 have margins of about 3 percent, and the last of them will be delivered in the next six months, Calciolari said. Margins at its other two units range from 35 percent to 50 percent, he said.
2. Elimination of corporate (longer-term, non-operational) debt:
- Proceeds from a 1.4 billion-real ($605 million) sale of its 70 percent stake in Alphaville Urbanismo SA, expected to close this year, will be used to reduce Gafisa’s debt-to-equity ratio to about 55 percent from 126 percent currently, according to the company’s third-quarter earnings report. Remaining cash may be distributed to shareholders, Calciolari said.
- The money will enable the company to effectively reduce its obligations to zero, leaving it with debt that's considered transitory and is passed on to home buyers when units are sold, he said.
3. Significant pick-up in demand:
- Gafisa’s contracted sales were 370 million reais in October, Calciolari said. That compares with the 429 million reais that the company reported for the entire third quarter.