Desarrolladora Homex, S.A.B. de C.V. Stock

Desarrolladora Homex, S.A.B. de C.V., a vertically integrated home development company, engages in the development, construction, and sale of entry-level, middle-income and tourism housing in Mexico and Brazil.

Products

The company’s affordable entry-level developments range in size from 500 to 20,000 homes and are developed in stages typically comprising 300 homes each. A typical affordable entry-level home consists of a kitchen, living, dining area, one to three bedrooms, and one bathroom. Its affordable entry-level housing developments are located in the states of México, Jalisco, Baja California Sur, Baja California, Quintana Roo and Nuevo León. The company’s middle-income developments range in size from 400 to 2,000 homes and are developed in stages typically comprising 200 homes each. A typical middle-income home consists of a kitchen, dining room, living room, two or three bedrooms, and two bathrooms.

Land Reserves

The company had total land reserves under title of approximately 75.2 million square meters, as of December 31, 2012, including primarily land reserves in Mexico and including approximately 2.3 million square meters of land reserves for its operations in Brazil. The company’s land reserves include both titled land and land in the process of being titled.

For its Mexican operations, the company acquires land and plans the development of the homes the company builds through Proyectos Inmobiliarios de Culiacán, S.A. de C.V., or ‘PICSA’; Casas Beta del Centro, S. de R.L. de C.V.; Casas Beta del Norte, S. de R.L. de C.V.; Casas Beta del Noroeste, S. de R.L. de C.V.; Desarrolladora de Casas del Noroeste, S.A. de C.V. or ‘DECANO’; and CT Loreto, S. de R.L. de C.V. or ‘CT LORETO’ build the developments that PICSA and Beta plan and promote.

The company also receives executive and administrative services from Administradora PICSA, S.A. de C.V. and Altos Mandos de Negocios, S.A. de C.V. Homex Atizapán, S.A. de C.V., which the company operates and controls with strategic partners in the region, owns one of its middle-income developments in the Mexico City area and Hogares del Noroeste, S.A. de C.V. owns middle-income developments in Hermosillo, Sonora. Through AAA Homex Trust, a Mexican trust, the company establishes factoring facilities for the settlement of trade payables to many of its suppliers. For its Brazilian operations, the company acquires land and plans the development of the homes the company builds through Homex Brasil Participacoes Limitada’s subsidiaries.

International Activities

Brazil, Sao Jose dos Campos, Marilia and Campo Grande Affordable Entry- Level Projects: As of December 31, 2012, the company had 3 projects under construction equivalent to approximately 5,571 homes in the cities of Sao Jose dos Campos, Marilia and Campo Grande.

Indian Joint Venture

In 2010, the company, through its subsidiary, Homex India Private Limited, entered into an investment agreement with Kotak Real State Fund — I. Pursuant to such investment agreement, and subject to conditions precedent related to obtaining all required permits for the construction of a real estate development of 2,000 middle-income housing in the city of Chennai, India, the company would acquire all equity shares of KS Realty Constructions Private Limited (KS Realty), the company that owns the land on which the project will be developed. As of December 31, 2012, the conditions precedent to be achieved in order to acquire all equity shares of KS Realty was not realized and the investment agreement was terminated effective in July, 2012.

Markets

The company operates in geographically diverse markets throughout Mexico, from Tijuana in the north to Tapachula in the south, including 146 developments in 35 cities and 21 states, as of December 31, 2012. As a diversified homebuilder its national footprint covers: capital cities; industrial cities, including Puebla, Monterrey, Guanajuato, Saltillo and Chihuahua; and tourism and service oriented cities.

Suppliers

The company’s main suppliers include Cemex México, S.A. de C.V.; Aceros Turia, S.A. de C.V.; Home Depot Mexico, S. de R.L. de C.V.; Edenred Mexico, S.A. de C.V.; Distribuidora Tamex, S.A. de C.V.; Compañía Sherwin Williams, S.A. de C.V.; Construcciones Lizarraga, S.A. de C.V.; Sanitarios, Azulejos y Recubrimientos, S.A. de C.V.; Emsco, S.A. de C.V.; Capeco, S.A. de C.V.; Cuprum, S.A. de C.V.; and Prefabricados Realiza del Norte, S.A. de C.V.

Competition

The company’s competitors include Corporación GEO, S.A.B. de C.V.; Consorcio ARA, S.A.B. de C.V.; SARE, S.A.B. de C.V.; and URBI Desarrollos Urbanos, S.A.B. de C.V.

History

Desarrolladora Homex, S.A.B. de C.V. was founded in 1989.