Su Casita Sees Strength in Sale to Spain

Mexican mortgage lender Su Casita says it sees upside in this week’s sale to Spain’s Caja Madrid. “You’re going to see a much more developed financial institution from Su Casita,” Hipotecaria Su Casita CFO Mark Zaltzman tells LatinFinance. “We’re going to be in a much better position to make a decision about what other products if any we’re going to be getting into,” he adds. Caja Madrid took complete control of Grupo Su Casita this week with the purchase of the 60% of the shares it did not already hold, for an estimated $340m. Zaltzman declines to comment on the price. Local investors are encouraged by the transaction, which they see as a vote of confidence in Mexico. “This is another good sign, in the face of a global crisis in the housing sector,” says Tonatiuh Rodriguez, head of investment at Afore XXI. “It’s a fair price and it must have good potential,” adds the investor, who has $5bn equivalent under management. Zaltzman views the deal as part of the development of Su Casita from a Sofol to a more diverse financial institution and does not rule out an eventual move into banking. “Financially we now have more potential . . . this is a very competitive environment and you need strength,” says the CFO. The official also expects to keep his job. “Caja Madrid expressed that they were going to retain management for the time being,” says Zaltzman. The final sale is still subject to Mexican and Spanish approvals. “We expect these approvals to take place in the next 90 days,” says Zaltzman. Su Casita shareholders were advised by Credit Suisse.