Risk Factors

Before making an investment decision, potential investors should carefully take into consideration all information available on this website, especially the risks mentioned below. Viver’s business, financial situation and income from operations may be negatively and significantly affected by any of these risks. Additional risks that the Company is not currently aware of at this time, or which it assumes to be negligible, may also affect its business and, thus, its financial situation.

1. Risks related to Viver’s business and the Real Estate sector

  • Viver is exposed to risks associated with real estate sites purchases, product development, construction, financing and sales.
  • Possible delays or construction defects in the Company’s real estate developments may adversely affect its image and business, and may expose Viver to tort liability.
  • The scarcity of available financing and/or increases in interest rates may adversely affect the ability or willingness of prospective real estate buyers to finance their purchases.
  • Viver is subject to risks normally associated with providing financing.
  • Viver future growth may require additional capital, which may not be available on terms acceptable to the Company or at all.
  • The real estate industry in Brazil is highly competitive and Viver could lose its market position in certain circumstances.
  • The loss of our senior management, or the inability to attract and retain qualified management personnel, may have a material adverse effect on our financial condition and results of operations.
  • The interests of Viver’s controlling shareholders may conflict with those of the Company’s other shareholders.
  • Viver’s business is subject to extensive regulation, which could increase the Company’s costs and limit its growth or otherwise adversely affect its business.
  • Real estate development is subject to extensive environmental regulations. If the Company is unable to comply with these regulations, its financial condition and its results of operations may be materially and adversely affected.
  • Viver may not be able to successfully implement its growth strategy or manage its growth.
  • The use of outsourced labor may imply the assumption of labor and social security liabilities.
  • An increase in the price of inputs may raise the cost of developments and reduce the Company’s profits.

2. Risks related to the macroeconomic environment

  • The Brazilian government has exercised, and continues to exercise, significant influence over the Brazilian economy. This influence, as well as Brazilian political and economic conditions, could adversely affect our activities and the market price of Viver’s common shares.
  • Inflation and government measures to curb inflation may significantly contribute to economic uncertainty in Brazil, which may adversely affect the Company’s business and the market price of Viver’s common shares.
  • Exchange rate instability may adversely affect our business, financial condition and results of operations, and the market price of Viver’s common shares.
  • Events and the perception of risk in other countries, especially the United States and emerging market countries, may adversely affect the Brazilian economy and, as a result, the market price of Brazilian securities, including Viver’s common shares.
  • Amendments to Brazilian tax policies may jeopardize the Company.