Paladin Realty Invests $40 Million in Brazilian Homebuilder

---

Paladin Realty Partners, LLC, a leading real estate investment fund manager focused on Latin America, recently announced affiliates of the firm have completed an investment in You Inc. Incorporadora e Participações S.A. ("You Inc." or "the Company"), a two-year-old midsized homebuilder headquartered in São Paulo, Brazil. Paladin committed approximately $40 million to the Company. Proceeds of the investment will be used for project equity requirements, land purchases and the Company's working capital needs.

You Inc. is a residential real estate developer incorporated in October 2009 by Abrão Muszkat, who has over 35 years of experience in São Paulo's residential market. Since the Company's formation two years ago, it has launched 13 of its first 16 projects totaling 1,326 units. The company focuses on the development of compact middle‐income housing in São Paulo.

Paladin Realty has a previous relationship with the Company, having established a project-level joint venture with them in 2010. In addition, Mr. Muszkat was Paladin's first Brazilian partner in a previous business relationship that began in 1999.

"Our most recent investment platform with You Inc. is exceeding our expectations, and we're thrilled to make this investment now at the corporate level," said James R. Worms, Chairman and Chief Executive Officer of Paladin Realty Partners, LLC. "Brazil is truly a dynamic housing market and we believe that sustained growth will be driven by a positive macroeconomic environment, favorable demographic trends, including rapid middle‐income household formation, and homebuyers' increased access to affordable long‐term mortgage financing. You Inc.'s experienced leadership and lean organization allow it to take advantage of opportunities quickly."

"We're very happy with the continued support shown to us by Paladin Realty," said Abrão Muszkat, President of You Inc. "We believe there is a continuing opportunity to develop new middle class housing in São Paulo, and we welcome a partner as experienced as Paladin in helping us move forward with our business plans."

Founded in 1995, Paladin Realty Partners, LLC is an institutional real estate fund manager focused on Latin America. The firm focuses on the development of for-sale housing as well as opportunistic commercial investments and select entity-level transactions and distress situations. The firm has acquired or developed over US$7 billion of real estate across the United States, Brazil and other Latin America countries. Paladin Realty is headquartered in Los Angeles, CA, with offices in Morristown, NJ and São Paulo, Brazil.