Direcional was founded on February 19, 1981, by its controlling shareholder and chief executive officer, Mr. Ricardo Valadares Gontijo, who became nationally known because of his real estate projects in the low-income segment as director of Construtora Andrade Valadares, a Brazilian real estate construction company. Over the course of his career, Mr. Gontijo has overseen the development of more than 55,000 residential units throughout approximately 26 Brazilian cities.

Direcional began your business developing and building small housing projects for the low-income segment and infrastructure projects for the public sector, in the city of Belo Horizonte, in the State of Minas Gerais. In the mid-1980s, Direcional began focusing on developing our brand in the State of Minas Gerais. Direcional is well known in the state, and has participated in and won bidding processes for the development of infra-structure projects in several cities in the state, particularly those related to the basic sanitation and health sector. In addition, the Company undertook many construction projects as a contractor for large private companies during this time.

In 1992 began to expand its activities outside the State of Minas Gerais with the first real estate projects in Federal District. Direcional entered into several financing agreements with the Caixa Econômica Federal (CEF) for low-income housing developments, and as a result, have acquired a great experience dealing with the legal requirements for CEF housing projects.

In 2001, the expansion has continued reaching the city of Campinas, in the State of São Paulo. In the following years, expansion included new regions, including the State of Rio de Janeiro, the State of Espírito Santo and new cities in the Federal District.

In 2006, Direcional started the expansion to the north side of the country, launching in Manaus one project which was designed as a planned community with 1,984 units and full infrastructure, including leisure, green area, administrative and commercial spaces.

On February 29, 2008, Direcional became a publicly held company registered at the CVM (the Brazilian SEC).

On March 2008, the Tarpon Real Estate Fund invested in Direcional, by acquiring 25.0% of your outstanding share capital.

In July 2008, it was established the Direcional Corretora de Imóveis S.A., or Direcional Corretora (Expert), a wholly-owned subsidiary, whose purpose is to render services acting as intermediaries in buying, selling and leasing real estate properties, as well as providing real estate consulting services.

In July 2009, according to the magazine O Empreiteiro, Direcional was considered the fifth largest real estate company in Brazil in terms of square meters launched and the sixth largest in terms of square meters under construction.

In November 2009 Direcional concluded its Initial Public Offering, what culminated in the raising of funds of R$ 274 million. The funds raised are intended solely to expand the operational activities of the Company. As part of IPO prices, the Company started being listed in the Novo Mercado, the highest Corporate Governance level of BM&FBOVESPA.

In February 2011, we successfully concluded a primary and secondary offering of shares. 20.8 million new shares were issued in the primary offering and 7.2 million sold in the secondary offering of shares held by the controller. The gross funding was R$ 228.8 million for the Company. The resources from this offering was used, principally, for the acquisition of land and launches dedicated to the Popular Segment, and from 2011, to finance the new growth plan over the next few years. Still in 2011, Direcional start adopted the “Associativo” financing model for the projects included in PMCMV level 2 and 3, according to which customers are transferred to banks when the sale is carried out, which significantly reduces the risk of a sale being canceled.

In 2012 we consolidated our position as the most relevant player in the very-low-income segment of The “Minha Casa, Minha Vida” program, with 24,254 units contracted, which 23,234 units under “Minha Casa, Minha Vida” program Level 1 and 1,020 units under the others levels of the program, totaling a PSV of R$ 1,8 billion.

In 2013 Direcional contracted a achieved a cash flow generation of R$ 76 million, alongside an increase of 17% in sales and 20% in net revenue, which reached a record of R$ 1.7 billion. From the “Minha Casa, Minha Vida” contracted 34,554 units, totaling a PSV of R$ 2.0 billion, reaching increase of 42% under the units contracted in comparison to 2012. In February 2014, according to ITC ranking of 2013, Direcional was considered the third largest real estate company in Brazil in terms of square meters under construction.

In 2014 Direcional achieved a revenue growth with strong cash generation reached R$ 158 million. Another highlight continued to be the very-low-income segment of the “Minha Casa, Minha Vida” program, in 2014 the company achieved 10% of the Market Share in the MCMV segment level 1.

Since the beginning of the program, 36 projects were contracted in MCMV level 1, totaling PSV of R$ 5.8 billions and more than 91,000 units, an average of 2,532 units per building site. The Direcional was the company that hired enterprises in the “Minha Casa, Minha Vida” program in the segment level 1, reaching 5% share of the consolidated I and II phase of the program.

In 2015 Direcional stipulate with strategy to increase the share of low-income developments in our business, since (i) we can adopt the same industrialized, low-cost construction model used in MCMV – Level 1; (ii) customers can contract the “Associativo” financing model, which significantly reduces the likelihood of sales cancellations and the amount of own capital invested in these projects; and (iii) the funding originates from the Government Severance Indemnity Fund for Employees (FGTS), which, currently, has funds to keep financing Low-Income households. Since the beginning of the program, 17,000 units were contracted, totaling a PSV of R$ 1.5 billion of low-income projects included in PMCMV level 2 and 3.