Corporacion GEO Announces IFC Partnership to Expand "ALPHA" Prefabricated Technology

MEXICO CITY, Jan. 25, 2012 /PRNewswire/ -- Corporacion GEO, S.A.B de C.V. (BMV: GEOB; CORPGEO MX, ADR Level I CUSIP: 21986V204; Latibex: XGEO), Casas GEO, Mexico's leading affordable entry-level housing developer, today announced its partnership with the IFC (International Finance Corporation, a member of the World Bank Group), in which the IFC will contribute an equity investment of $25 million to ALPHA, GEO's prefabricated construction technology.

These resources will help GEO expand its prefabricated construction business, building up to 45,000 affordable homes a year by 2015, using ALPHA technology. The partnership grants the IFC a 16.7% equity stake in the Company's ALPHA subsidiary.

IFC's approach in Mexico is to build private sector capacity to deliver a sustainable home-building program that addresses the country's shortage of affordable housing and urban infrastructure. 

ALPHA is the only Latin American Company using innovative technology that allows GEO to build homes in production facilities and assemble them on-site. This automated process, which includes an integrated system of precast concrete panels, creates a high-quality product and significantly speeds up the construction cycle.

"Our plants have delivered about 7,800 affordable and sustainable homes, and we have had very positive feedback from our customers. Partnering with IFC will help us further consolidate our leadership position and remain competitive through higher operational efficiencies, enabling us to deliver a better quality product to lower-income families and to expand into new markets," commented Luis Orvananos, CEO and Chairman of Corporacion GEO.

Oscar Chemerinski, IFC Director, Manufacturing, Agribusiness and Services for Latin America and Sub-Saharan Africa, said: "IFC's home-building strategy is to finance companies that build homes for users at the base of the economic pyramid. In addition to doing that, this project will also promote technology innovation and accelerate GEO's growth into a regional business leader with the opportunity to expand and transfer knowledge to Central and South America." 

Moreover, Luis Abdeljalek, GEO's Real Estate Officer commented: "We are pleased that ALPHA has been considered by IFC as an attractive investment recognizing the feasibility of its technology and business model, after having successfully passed all criteria used on their due diligence. We are certain that this partnership is an important step in GEO's continued growth, towards globalizing ALPHA's operations and eventually becoming a public Company, as part of our long-term vision."

About Corporacion GEO S.A.B. de C.V.

Corporacion GEO is a leading housing developer in Mexico and one of the largest in Latin America. The Company is engaged in all aspects of design, development, construction, marketing, sales and delivery of mainly low-income housing developments in Mexico. With operations in 20 states, GEO is one of the most geographically diversified homebuilders in Mexico. Since its inception GEO has sold more than 560,000 homes which currently provide housing to 2,000,000 people. GEO's Solid Business Model focuses mainly in the Affordable Entry Level and Economic segments, which are supported by government policies and by the Mexican Housing Institutions INFONAVIT and FOVISSSTE. For more information, visit www.corporaciongeo.com

About IFC

IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. IFC helps developing countries achieve sustainable growth by financing investment, providing advisory services to businesses and governments, and mobilizing capital in the international financial markets. In fiscal 2011, amid economic uncertainty across the globe, we helped our clients create jobs, strengthen environmental performance, and contribute to their local communities—all while driving our investments to an all-time high of nearly $19 billion. For more information, visit www.ifc.org

SOURCE Corporacion GEO S.A.B. de C.V.

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