Homex

Homex is a Mexican construction and real estate company engaged in the development, construction and sale of affordable entry-level, middle-income and tourism housing in Mexico and Brazil. Founded in Culiacán in 1989, the company is headquartered in Culiacán and it is listed in the Mexican Stock Exchange.[1]

Desarrolladora Homex, S.A.B. de C.V.
TypeSociedad Anónima Bursátil de Capital Variable
BMV: HOMEX *
IndustryConstruction & Real Estate
Founded1989
HeadquartersCuliacán, Mexico
ProductsHome builder
Websitewww.homex.com.mx

History

Homex was formed in 1989 at Culiacán, Sinaloa. Its initial focus was commercial construction.[2] In the early 1990s, the company expanded into other states, and began work in affordable housing construction. In 1999, ZN Mexico Funds acquired a minority stake.

In 2002, the company received a major investment of $32 million from Sam Zell, through his Equity International Investment Fund. In the mid 2000s, Homex grew rapidly, expanding production from 5,000 homes a year to over 50,000 homes per year.[3] Homex went public in 2004, with shares dual-listed on the New York Stock Exchange and Mexican Stock Exchange; the offering raised $141 million. The company issued a private offering of US$250 million in Senior Guaranteed Notes in 2005, and a secondary public offering of approximately 46 million shares of its common stock in 2006.

After acquiring rival builder Casas Beta through a merger in 2005, Homex became the largest homebuilder in Mexico in terms of operating profit and net income. In the late 2000s, the company expanded into international, tourism-related, and government infrastructure development. Equity International divested in 2008.

Starting in 2011, Homex started a transition towards vertical construction in Mexico.

In 2014, Homexwas delisted from the New York Stock Exchange.[4]

Activities

The company is engaged in affordable entry-level, middle-income and tourism housing, public infrastructures, such as prison facilities.[5]

Homex consists of four divisions: Mexico Division, International Division, Government Division and Tourism Division.[6] Currently (2011.12.31), the Company owns such subsidiaries as Casas Beta del Centro S de RL de CV, Hogares de Noroeste SA de CV, Homex Amueblate SA de CV, Homex Global SA de CV, Sofhomex SA de CV SFOMER, Homex Atizapan SA de CV and Altos Mandos de Negocios SA de CV, among others.[5]

Governance

Here is a list of Desarrolladora Homex's senior officers and directors (2013.9.20):

  • Eustaquio Tomas de Nicolás Gutiérrez, chairman of the board
  • Gerardo de Nicolás Gutiérrez, chief executive officer
  • Carlos Moctezuma Velasco, chief financial officer
  • Ramón Lafarga Bátiz, administrative and accounting
  • Ana Cristina Herrera Lasso Espinosa, human resources and social responsibility vice
  • Alberto Menchaca Valenzuela, vice president — Mexico Division
  • Ruben Izabal Gonzalez, president — Construction
  • Carolina Silva Sanchez, vice president — Tourism Division[7]

Controversies

As 2017, the company has a bankruptcy protection[8] (concurso mercantil) process [9] by a record debt of 98 billions of Mexican pesos,[10] be the largest liability recognized by a company that enters this legal figure.

In 2017, Homex settled fraud charges filed by the U.S. Securities and Exchange Commission. The settlement included a provision banning Homex from US-based exchanges for 5 years.[11]

References
  1. "Desarrolladora Homex SAB de CV". Bloomberg. Retrieved 18 July 2013.
  2. "History". Archived from the original on 2013-11-10.
  3. Marosi, Richard (26 November 2017). "The Homex story: A boom and a bust". LA Times. Retrieved 28 November 2017.
  4. Egan, Matt (3 March 2017). "Mexican company faked the building of 100,000 homes: SEC". CNN. Retrieved 28 November 2017.
  5. "Company Description". Archived from the original on 2004-12-12.
  6. "Corporate Profile". Archived from the original on 2013-11-10.
  7. "Management". Archived from the original on 2010-07-09. Retrieved 2013-11-10.
  8. Marosi, Richard (2017-11-26). "A failed vision". L.A. Times. Retrieved 2020-10-05.
  9. "Homex entra en concurso mercantil". CNN Expansión (in Spanish). 2014-06-16. Retrieved 2020-10-05.
  10. Fuentes, Víctor (2014-09-08). "Rompe Homex récord de deuda en concurso". Grupo Reformas (in Spanish). Retrieved 2020-10-05.
  11. Webber, Jude (3 March 2017). "Mexican homebuilder settles SEC 'fake homes' fraud charges". Financial Times. Retrieved 28 November 2017.
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