Mexico real estate investments Blog

It has been reported in the local press in Loreto that a meeting was held yesterday March 9, 2010 in Loreto, Baja California Sur at the Loreto Bay Inn by the Governor of Baja California Sur, Narciso Agundez, the Director General of FONATUR, Miguel Gomez Mont, and the Mayor of Loreto, Yuan Yee, the Chairman of the Board of Desarrolladora Homex S.A.B. de C.V., Eustaquio de Nicolas, and others. At such meeting the State Government of Baja California Sur and FONATUR made the announcement of the re-launching of Loreto as a tourist destination. As a part of this effort it was announced that $368,000,000 Mexican Pesos would be invested in infrastructure and maintenance in Loreto and that the Loreto Bay development was purchased by Homex.

No official press release about this has been made by the State Government of Baja California Sur or by FONATUR. No official announcement of the purchase of Loreto Bay has been made by Desarrolladora Homex S.A.B. de C.V. yet. The homeowners at the Loreto Bay development have not yet been given any notice of the sale.

What are the terms of the sale of Loreto Bay? Did Homex only purchase the assets of TSD Loreto Partners? Did it purchase the entity TSD Loreto Partners S. en C. por A. de C.V.? How will the sale impact homeowners at Loreto Bay? Will the unfinished homes at Loreto Bay be finished by Homex? Will Homex honor the agreements entered into by TSD Loreto Partners S. en C. por A. de C.V.? What about those homeowners that hired a third party contractor to finish their homes but did not terminate their construction agreements with TSD Loreto Partners?

Here are some links to Radar Politico which published some articles about the purchase of Loreto Bay by Homex:

http://www.radarpolitico.com/2010/03/10/avanzara-consolidacion-turistica-de-loreto-en-2010-yuan-yee/

http://www.radarpolitico.com/2010/03/10/presentan-proyecto-de-relanzamiento-turistico-de-loreto/

One of the rumors that I have kept hearing is regarding Desarrolladora Homex’s negotiations with Citigroup for the sale of TSD Loreto Partners S. en C. por A. de C.V. (commonly known as the Loreto Bay Company). If this is true, then what does it mean to a homebuyer that did not have their home construction completed by TSD Loreto Partners? What if they hired a third party contractor to finish their construction, such as the “global solution” for the Aqua viva homes as proposed by Beck Internacional de Mexico?

It is clear that there are many questions that remain unanswered for the buyers of the Loreto Bay development in the Nopolo area of Loreto, Baja California Sur, Mexico. We will have to wait and see how things develop.