PDG Realty S.A. Empreendimentos e Participações - Under Court-supervised

Reorganization

Publicly-held Authorized Capital Stock Company

CNPJ/MF n.º 02.950.811/0001-89

NIRE 35.300.158.954 | CVM Code 20478

NOTICE TO THE MARKET

The PDG Realty S.A. Empreendimentos e Participações - Under Court-supervised

Reorganization (BM&FBOVESPA: PDGR3), a publicly held company, under the CNPJ/MF number 02.950.811/0001-89 ("Company"), located at Avenida Doutor Cardoso de Melo, 1,955, 6th floor, Vila Olímpia, city of São Paulo, São Paulo, Zip Code 04548-005. The Company is registered as a public company under the category "A", in accordance to the Comissão de

Valores Mobiliários ("CVM", or the Brazilian Securities and Exchange Comission) and the CVM Code 20478.

Pursuant to Article 12 Instruction 358 of CVM, dated January 3, 2002, as amended, PDG Realty S.A. Empreendimentos e Participações - Under Court-supervised Reorganization, announces to its shareholders and the market in general that:

The Company received a letter from Morgan Stanley ("Morgan Stanley"), informing that its aggregated shares position, accounting for its subsidiaries (Morgan Stanley Capital Services LLC, Morgan Stanley & Co. International plc, Morgan Stanley Uruguay Ltda., Morgan Stanley Smith Barney LLC, Caieiras Fundo de Investimento Multimercado e Formula XVI Fundo de Investimento Multimercado Credito Privado), amounted to 2,619,036 (two million, six hundred and nineteen and thirty six) common shares, representing 5.2% of the total number of the Company´s common shares outstanding.

Furthermore, we would like to inform that Morgan Stanley also owns a position in the Subscription Bonus, representative to 3,642,555 of the Company´s common shares.

Morgan Stanley further states that these common shares are held only for investment purposes and not to alter the Company's ownership breakdown or management structure.

The Appendix I contains a copy of the letter received from Morgan Stanley.

São Paulo, December 14, 2017.

Vladimir Kundert Ranevsky

CEO, CFO and Investor Relations Director of PDG Realty S.A. Empreendimentos e

Participações - Under Court-supervised Reorganization

APPENDIX I

PDG Realty SA Empreendimentos e Participações published this content on 14 December 2017 and is solely responsible for the information contained herein.
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