BR Properties : Material Fact - Announcement of Share Buyback Program

BR Properties S.A. ("Company"), hereby announces to its shareholders and to the market, in compliance with the provisions of CVM Instruction No. 385/02, as amended, that the board of directors has approved, according to the meeting held on March 27th, 2017, the Company Share Buyback Program, in accordance with Article 8 of CVM Instruction No. 10, of February 14th, 1980, as amended ("Share Buyback Program").

The Share Buyback Program aims to acquire shares issued by the Company to be held in treasury and subsequently to be used as a guarantee for share-based compensation programs (Stock Option Plan and Restricted Shares Plan, both approved in the General Meeting of Shareholders on October 31, 2016 and their respective programs), with no capital reduction.

The Share Buyback Program will be valid until September 27th, 2017, and includes the acquisition of up to 2,900,000 (two million and nine hundred thousand) ordinary shares issued by the Company in the amount of up to R$ 29,000,000.00 (twenty nine million reais). The acquisition will take place on the São Paulo Stock Exchange at market price.

The following financial institutions will act as intermediaries in the shares acquisition transaction: ITAÚ CORRETORA DE VALORES S.A., headquartered at Avenida Brigadeiro Faria Lima, 3500, 3rd floor, São Paulo, SP, CNPJ No. 61.194.353/0001-64; and CREDIT SUISSE (BRASIL) S.A. CORRETORA DE TÍTULOS E VALORES

Paulo, SP, CNPJ No. 42.584.318/0001-07

The minutes of the board of directors' meeting that approved the operation is available for shareholders in the Company's headquarter and investor relations website (www.brpr.com.br), as well as in the website of CVM and BM&FBOVESPA.

São Paulo, March 28th, 2017.

Chief Financial and Investor Relations Officer