Alpha is a wholly-owned subsidiary of Corporacion GEO S.A.B. de C.V (Geo or Sponsor), a leading housing developer in Mexico and one of the largest in Latin America. Geo is a fully integrated and highly diversified homebuilder engaged in all aspects of design, development, construction, marketing, sales and delivery of houses mainly in the low-income segment. The Sponsor was founded in 1973 and is now present in 57 cities and 18 states, selling more than half a million homes since its inception. GEO is listed on the Mexican Stock Exchange with a market capitalization of approximately $1.4 billion as of May 13, 2011.

The total project cost is estimated at $150-200 million. IFC is planning to invest up to $40 million in equity or quasi-equity.

25.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	25.0

* These investment figures are indicative

The project will be implemented in Mexico supporting plants in Tijuana, Zumpango, Jalisco, Monterrey, and an additional plant to be determined as well as mobile plants throughout Mexico.

The development impacts of the project include: (i) increase of housing supply for low income households - this project is expected to contribute to the alleviation of the current housing deficit in Mexico, increasing the supply of affordable entry level housing by 40,000 houses a year; (ii) GEO plans to leverage part of the efficiency gains by providing a larger house (more square meters) to its clients at the same low entry price (approximately US$15,000); (iii) enhanced supply linkages - the project will increase demand for construction and building materials in the country; (iv) job creation - the new facilities are expected to create 1,500 new jobs in 2011 and additional jobs in line with the Company's growth in the future; (v) demonstration effect - the project will lead the way to improve private sector development in this segment of the housing market; (vi) Green Building- the technology adopted by ALPHA will reduce the environmental impact building materials by saving of more than 70% of the traditional waste generation and reduction of the energy use in the construction process by 18%. The prefabrication will also allow for higher levels of insulation and integration of water and energy efficient technology in the homes. The client is interested to work with IFC's Green Building Specialist to explore these opportunities.

1) Financial risk mitigation: By providing Alpha with the necessary long term equity financing, IFC will establish a long term partnership with the leading homebuilder in Mexico as it expands its capacity in the affordable housing construction business. 2) Standard setting: IFC will assess with the Company if there are improvement opportunities in areas such as energy efficiency and environmental management. IFC will also try to identify improvements in the production process that can help Alpha reduce resource use and prevent pollution. 3) Global support: IFC aims to support the Company in its potential expansion into Central and South America in the medium term. Once Alpha consolidates in Mexico, GEO plans to expand this technology outside of Mexico and it values IFC knowledge of the local markets in Central and South America.

This is a category B project according to IFC’s Procedure for Environmental and Social Review of Projects because a limited number of specific environmental and social impacts may result that can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria as is described in the following sections.

Key environmental and social issues have been identified as follows: i) Alpha’s management of social, environmental, and health and safety matters during production and assembly of the houses, including the management of contractors; ii) Efficient use of energy, water and resources; iii) Air emission controls; iv) Waste reduction and disposal; v) Labor and working conditions for employees and contractors; and vi) Occupational health and safety conditions including construction safety during the assembly process on the housing developments.