The Housetech strategy is to create value for its shareholders and clients by way of profitable expansion and the growth of operations and revenues from real estate developments. This will be achieved by utilising our competitive strengths and advantages.
Housetech’s key strategic goals include:
Exploring opportunities to grow in the middle-income residential segment – Housetech believes that current market conditions represent a substantially increased demand in this demographic. This is due to a number of factors including: the present expectation for an increase in the availability of credit and a reduction in interest rates for middle-income real estate financing, the expectation of a combination of favourable macro-economic factors, such as the reduction of official interest rates, the growth of Brazil´s GDP and decreased inflation and unemployment. Housetech believes that its vast experience of operating in this sector provides us with a distinct advantage over our competitors when exploring these opportunities.
Expanding our operations to other regions – Aside from continued growth in our current market settings, Housetech also intends to expand operations across other Brazilian urban centres in order to broaden our access to new business opportunities. Housetech plans to expand to other promising development regions working in partnership with local developers and replicating products that it has successfully launched in other cities.
Partnering with local entrepreneurs – Housetech has aspirations to work alongside local partners that can contribute with new business opportunities and innovative ideas, such as properties for development. We also look to partner with entrepreneurs who have a sound knowledge of regional hotspots that offer genuine development potential. In return, Housetech will apply its broad experience in managing real estate developments and construction processes, sales strategies and financial and legal structuring, while also providing economies of scale for purchases of raw materials.
Maintaining our operating flexibility to capitalize on business opportunities in any demographic - Housetech intends to maintain the flexibility to adapt the company’s product portfolio to respond efficiently to the contrasting demands for properties in the real estate market in the cities where it serves. This will allow Housetech to maximise the potential across a range of diverse development opportunities. Housetech believes that the majority of Brasilian families prefer to live in closed communities, where it can find safety and leisure and we intend to continue developing this type of property, making use of our vast knowledge and experience in constructing well-built properties at affordable prices. Since the government's commitment in 2009 to eliminate the inequity gap and housing deficit in Brasil we shifted our focus to delivering the same high standards and specifications at a more affordable price, leaving you to adore your home for a lifetime instead of paying it off.
Maintaining discipline and financial solidarity, whilst sourcing reliable financial streams - The Brasilian real estate sector relies heavily on credit facilities to cover both construction costs and to finance long-term costs. Housetech’s financial strategy looks to maintain its solid financial position. Housetech adheres to a strict valuation and budgeting policy, as well as maintaining tight controls over the financial structuring and execution of developments to manage its cash flow responsibly. Housetech will continue to pursue construction funds from the Brazilian government´s Housing Financing System in order to benefit from its low interest rates. Housetech also plans to use a portion of the proceeds from this offering to expand its own resources invested in developments, thereby increasing the participation in the proceeds from sales and to seize new business opportunities. In order to maximize working capital and the return on the investments, as well as maintaining the focus on new real estate developments, Housetech aims to maintain its procedure of selling on attractive terms to key institutions.
The maintenance of integrated operations, focusing specifically on cost reduction and the continued improvement of the construction process – Housetech intends to maintain its integrated operations allowing us manage and control all stages of development projects. Housetech also intends to continue the reduction of costs to increase its margins and profitability. In a bid to reduce construction costs, Housetech will look to centralise purchases of construction materials. This will enable us to increase purchasing volumes and give us the opportunity to negotiate lower prices with vendors. This results in economies of scale that ultimately lead to a reduction in the overall sales price of the units. In the area of residential properties for lower-middle-income and middle-income customers, Housetech uses relatively standardized materials that are much more efficient and allow for quicker construction. Housetech asserts that maintaining the construction activities across many of its developments is essential for the success of company ventures because it guarantees that we are able to control and continuously improve planning construction procedures and construction control techniques, purchasing processes and economies of scale to reduce construction costs.