Restated Consolidated Financial Statements
Years ended December 31, 2010, 2009 and 2008
Desarrolladora Homex, S.A.B. de C.V. and Subsidiaries
Notes to restated consolidated financial statements
for the years ended December 31, 2010 and 2009
(Figures in thousands of Mexican pesos (Ps.), except as otherwise indicated)
4. Business acquisition

On December 22, 2009 the Company entered into an Equity Interest Purchase Agreement of three companies (all together Loreto Companies). In accordance to the agreement, the Company was to deposit US $5 million into an escrow account. At December 31, 2009 the Company had deposited US $0.5 million (equivalent to Ps. 6,533); the rest was deposited on January 15, 2010. Depending on the satisfaction of diverse legal requirements, of which the most relevant was to evidence that the title of the asset transferred to the entities that will own them, is free and clear from any encumbrance, the Company was going to acquire through the Loreto companies different assets (hotel, golf course and land).
On July 20, 2010 the legal requirements for the majority of the assets were satisfied, and the Company was able to acquire 100% of the common shares of CT Prop, S. de R.L. de C.V., which owns 100% of the outstanding stock of CT Commercial Properties, S. de R.L. de C.V.

On December 31, 2010 the legal requirements for rest of the assets were fulfilled and the Company acquired the 100% of the common shares of CT Loreto, S. de R.L. de C.V.

At that date the Company had fully paid the total purchase price of US$ 22.5 million (Ps. 290,478). Part of the payment was done through a credit line granted by Banco Nacional de México, S.A. which outstanding balance as of December 31,2010 was Ps. 99,358 and will be paid during 2011 (see Note 11).

The fair value of the net assets and liabilities identified at the acquisition date is shown as follows:



This business acquisition was recorded using the purchase method. Since net assets at fair value were greater than the purchase price, the Company adjusted the value of the acquired assets in accordance to the order established in MFRS B-7, allocating the adjustment to the non-monetary assets that were the hotel, golf course and other minor assets.

The results of operations of the three Loreto companies have been included in the Company’s consolidated financial statements since the date of the acquisition. Among the main reasons for the acquisition of these companies was the Company to be able to develop a tourism development of 850 units including amenities such as a golf course and a hotel in the city of Loreto, Baja California Sur. The acquisition of these companies is expected to strength the Company’s position in the tourism domestic market, enhancing its presence in the Baja California Sur state. Pro-forma financial information as if this business combination has been completed as of January 1, 2009 has not been presented as the pro-forma statement of operations figures for 2009 and 2010 would not be materially different from those presented herein.