General Director, Tinsa México
The company has a strong M&A strategy in its business model. Four years ago, we put our company up for sale, and are now owned by a British private equity firm. The British private equity firm’s strategy is to buy companies and improve and merge them. In the last eight years, Tinsa has bought 11 companies, in places such as Morocco, Ecuador, and the Netherlands. We normally acquire family businesses. The business is bought and, usually, the owner becomes the manager or regional director for a stabilization period of two or three years. Then, if their performance was good, the person stays. Tinsa has a leading position in most countries. At present, I believe there are good opportunities outside of Mexico City. We are seeing it now with Guadalajara and Monterrey. I would also recommend retail even though, across the industrialized world, shopping centers are in decline. It is not the same in Mexico, where the opposite happens because there is a shortage of shopping centers. In Mexico, e-commerce and shopping centers are changing the way people buy. Therefore, in some parts, an advantage can come from presiding over physical commercial areas. We already have the presence of all international brands here, brands such as H&M and luxury ones such as Prada. E-commerce still does not have much penetration in Mexico. There are still many barriers to entry, so we will not see its major adoption in Mexico till the next decade. Tourism is another sector which has immense potential because the government fully supports it.
Senior Partner, President & CEO, Orange Investments
We have an original methodology to identify the greatest land potential for any real estate project. We have built this methodology over time with both internal people and academics. Its purpose is to formulate a hypothesis on the success potential of real estate development, or property in the market. It is carried out through a series of patented tools and statistics. The methodology can be summarized in three steps. The first is an exhaustive investigation of the local market as well as other markets. In the second part, statistics are applied and different tools are used and an analysis is performed to determine the hypothesis. Part three consists of the business model, the conceptualization of the case, financial opportunities, architecture, commercial strategy, and positioning. We have conducted over 200 studies. Currently, we are starting a project based on this methodology on an area of 80 acres in central Monterrey. Our project portfolio also includes a wide range of developments in cities such as Querétaro and Chambela. We are also present in countries like Colombia and Costa Rica. Mexico is many countries in one. We have beach products that are different from those we see in cities. Moreover, products in first-class cities such as Guadalajara, Monterrey, or Mexico City are also different as compared to Puebla, Querétaro, Mérida, or León. There are certain tendencies that we are all observing. In the big cities, vertical growth is a strong tendency. We are also observing the return of central areas and planned communities.
Broker & Director, Gregory Hokenson
The Balam Group was established 10 years ago. We handle middle to high-end residential real estate properties. We are also active in the construction sector, where we oversee personalized projects for clients seeking to buy a piece of land or property. We sell them the land and design and build their house. We also remodel high-value homes in central areas. We mostly work with expats from the US and Canada who seek to move or retire in Mexico. Mérida, north of Mérida, and the beach are good areas for investment. We work with most of the major local developers, such as Inmobilia and Grupo Del Sur. They have projects lined up for the next 10-20 years. There are an increasing number of companies in Quintana Roo and around the entire Yucatán peninsula, because there are incredible opportunities to be found there. Our long-term vision is to develop three to four large projects with a group of investors every year. We would take it from zero, find the appropriate land, and develop a product that will be attractive to both the national and foreign markets. We will do the construction, manage the project, conduct the sales and marketing, and work on the entire development process.
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