By Mariana Santibáñez
Mexico real estate: Long way home
As Mexico’s homebuilders wrangle over restructuring agreements with bondholders, the blame game is fierce
In July, Mexico’s largest homebuilder
Desarrolladora Homex skipped a payment on its 9.5% 2019 bond.
Homex had worked to avert default in the previous months. In
April, it sold its stake in two prisons to Carlos
Slim’s IDEAL and Grupo Financiero Inbursa for four
billion pesos. It also took out a bridge loan under a new
government loan guarantee program.
But that wasn’t enough.
After missing the interest payment, the company faced a
series of ratings downgrades, as well as a lawsuit by Barclays
and Credit Suisse for $70 million for terminating derivative
The builder hired JPMorgan to advise it on its strategic
Shortly thereafter, two more homebuilders,
Corporación Geo and Desarrollos Urbanos (Urbi), joined
Homex in a string of defaults as they struggled with heavy debt
loads and a changing industry.
The sensitivity of the issue — the three are
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