Notice to the Market - São Carlos Announces the Lease of 100% of Centro Empresarial URCA

Corporate Taxpayer's ID (CNPJ/MF) 29.780.061/0001-09 Company Registry (NIRE) 35.300.171.004

Publicly-held company

NOTICE TO THE MARKET

São Carlos Empreendimentos e Participações S.A. ("Company") hereby informs its shareholders and the market in general that it has signed an agreement to lease 100% of the building Centro Empresarial Urca. The contract has a 15-year term, starting in May 2017.

The building has 4,557 sqm of gross leasable area divided into 11 floors and is located at Av. Pasteur, 154, Botafogo, in the city of Rio de Janeiro.

This achievement reinforces the success of the Company's business model through the active management of its high quality portfolio in premium locations.

São Paulo, May 16th, 2017