PE Group Takes Javer Control

Southern Cross, Evercore and Mexico Capital Partners have bought a 60% stake in Servicios Corporativos Javer, the Mexican low and middle-income homebuilder. The buyer declines to state the value of the transaction, which it says does not involve any change to management, operating team or strategy. Nor does it involve any modification in Javer’s cash balance or financial position. Roberto Russildi and Eugenio Garza, CEO and CFO respectively, remain in place, while the company says that the rest of the senior management team has signed long-term contracts with incentives tied to performance. Company founder Salomon Marcuschamer will serve as Javer’s honorary chairman and the board will also include Southern Cross president Ricardo Rodriguez as chairman, and his colleagues Cesar Perez Barnes and Sebastian Villa, as well as Pedro Aspe and Alfredo Castellanos from Evercore. “Our investment in Javer relies on solid fundamentals, in one of the most relevant sectors of the country’s economic activity,” says Aspe. “The market knowledge and business expertise of Javer’s executive management have allowed it to become a leader in the sector and is a testament of the company’s competitive position,” he adds. Javer plans to build more than 17,500 homes in 2009 and has land reserves in excess of 100,000 units. According to Javer, homebuilding in Mexico is approximately a $20bn industry with annual demand for homes in excess of 800,000 units. Closing of the transaction, expected in November, will require approval from Mexican regulatory authorities. Javer reported Q1 net revenue of MXP1.1bn, up 53.3% and gross profit of MXP317.2m, up 19.0%.