By Chris Aspin and Noel Randewich
MEXICO CITY (Reuters) - Homex, one of Mexico's largest homebuilders, plans to focus on organic growth this year but does not rule out acquisitions to expand its business in the rapidly growing sector, the company's chief executive said on Tuesday.
David Sanchez-Tembleque, speaking at the Reuters Latin American Investment Summit in Mexico City, said Homex (HXM.N: Quote, Profile, Research, Stock Buzz) (HOMEX.MX: Quote, Profile, Research, Stock Buzz) would sell around 50,000 homes in 2007, up from 43,000 last year.
"We ought to grow to around 50,000," he said. "Our focus is going to be, and is right now, organic growth by opening markets, but I do not rule out growing also by acquiring."
Sanchez-Tembleque reiterated Homex's 2007 guidance for sales growth of between 17 percent and 20 percent.
Helped by economic stability and declining interest rates, Homex and rival homebuilders such as Geo (GEOB.MX: Quote, Profile, Research, Stock Buzz), Sare (SAREB.MX: Quote, Profile, Research, Stock Buzz), and Ara (ARA.MX: Quote, Profile, Research, Stock Buzz) have enjoyed a bonanza in recent years, mainly selling homes for less than $30,000 for poor Mexicans.
Mexican President Felipe Calderon, who took office in December, has vowed to continue a home building drive that his predecessor Vicente Fox started. Calderon wants to see 6 million new homes built in six years.
After half a decade of rapid growth in the sector, many choice building areas on the outskirts of cities have been used up.
"There's plenty of land in Mexico. The problem is finding land with services, where there's transport, a way to arrive, electricity, water," Sanchez-Tembleque said. Continued...
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