Rossi Residencial : Material Fact - Closing Partnership Construtora Capital

Rua Alexandre Dumas, 1.711- Ed Birmann 12 - 3° andar, conj. 301| Chácara Santo Antonio - São Paulo | CEP: 04717-911

Phone: (11) 4058-2502 | Fax: (11) 4058-2502

Company Registry (NIRE): 35.300.108.078 - CVM Registration 16306 Corporate Taxpayer's ID (CNPJ/MF): 61.065.751/0001-80

(Publicly-held Company)

MATERIAL FACT

residential real estate developers, after approval by its Board of Directors at the meeting of August 29, 2017, hereby informs its shareholders and the market in general of the decision to end the joint venture Capital Rossi Empreendimentos S.A. ("Capital Rossi") resulting from an association between the Company and Construtora Capital S.A. ("Construtora Capital").

Since 2010, the Company and Construtora Capital jointly launched, through Capital Rossi, 8,490 units in several real estate developments in the states of Amazonas and Pará, with a total PSV of R$2.1 billion.

However, due to its operational and strategic restructuring, the Company has been focusing on certain regions of the country and, therefore, it reached an agreement with Construtora Capital to end this partnership.

All the steps of this operation are being carefully planned in order to avoid any operational disruption, thus ensuring the seamless continuation of the developments already delivered and to be delivered.

The partnership will be extinguished without the need for cash disbursement by any of the parties, since the Company and Construtora Capital will split the existing assets held by Capital Rossi.

The transaction's conclusion is subject to the signature of final agreements and certain conditions and terms usually applied to this type of transaction, including approval by the Brazilian Antitrust Authority (CADE).

The Company reaffirms its commitment to maintaining the market informed of any relevant information, pursuant to the applicable legislation.

São Paulo, August 29, 2017.

Chief Financial and Investor Relations Officer