Mexico’s attempt to solve the country’s housing shortage by constructing millions of new homes far from city centers has crippled the nation’s homebuilders and fueled record foreclosures. For Antonio Diaz, a former investment banker with Banco Santander SA, it’s an opportunity.
Corp. Geo SAB, Mexico’s second- biggest homebuilder by revenue, plunged the most in 14 years after the company said it would miss an interest payment and that cash tumbled by 84 percent during the first quarter.
Desarrolladora Homex SAB shares and bonds plunged to a record after the homebuilder said it will try to raise money by selling assets and issuing debt after cash last year fell by the most in at least a decade.
Infonavit, Mexico’s state-backed mortgage lender, set up a fund to promote apartment construction, as the country’s biggest publicly traded homebuilders sell assets or restructure debt amid a cash squeeze.
Corp. Geo SAB and Urbi Desarrollos Urbanos SAB, the worst performing Mexican homebuilders this year, fell the most on the country’s benchmark index this week amid speculation they will be the worst hit by government housing policy changes.
Corp. Geo SAB, Mexico’s second- largest publicly traded homebuilder, said it will seek to restructure debt after bleeding cash for a third straight year, sparking a selloff that sent its bonds to record lows.
Desarrolladora Homex SAB, Mexico’s biggest homebuilder by sales, tumbled to the lowest price on record as the company’s announcement of a bridge loan today added to speculation that it’s strapped for cash.
Desarrolladora Homex SAB and Sare Holding SAB led Mexican homebuilders to their biggest weekly decline since August as analysts cut fourth-quarter earnings estimates on signs that sales slowed late last year.