Mexico's Homex optimistic about growth

By Noel Randewich and Jason Lange

MEXICO CITY (Reuters) - Homex, Mexico's top homebuilder, sees a massive housing shortage fueling several years of solid growth, as it also looks at eventual expansion into Brazil, India and China, a senior executive said.

Homex chief financial officer Alan Castellanos told the Reuters Latin America Investment Summit on Friday he is "very optimistic" the company will make its 18 percent target for real revenue growth this year.

He said Homex (HOMEX.MX: Quote, Profile, Research, Stock Buzz) (HXM.N: Quote, Profile, Research, Stock Buzz), with sales of $1.5 billion last year, is also studying housing markets in other developing countries with an eye to expanding outside Mexico, although not in the near term.

"We have an agent in Brazil looking around and another agent in India also looking around," Castellanos said. "We think our business model can be reproduced but we aren't finished with Mexico yet."

Mexico's homebuilders have been booming for more than five years thanks to improved economic stability and a government push to end a shortage of millions of houses.

The sector focuses on mass producing homes that sell for less than $40,000, although builders also dabble in more expensive homes with higher profit margins.

GROWTH POSSIBILITIES

Homex plans to maintain low-cost housing as more than 90 percent of its business.  Continued...