CentroMedico II

completed

The proposed $36 million Centro Medico Puerta de Hierro (CMPDH II or the project) repeat project will involve the construction of a new 57 bed hospital in the Tlajomulco district of Guadalajara, Mexico. The facility will offer trauma, gynecological and general medicine services and will include 20 consultation offices to be sold to doctors, following the successful model implemented in the first hospital project implemented by the Sponsors (see below). The Tlajomulco district is in the southern part of Guadalajara and is a growing residential area that currently has no hospitals or clinics. Land for the project has been identified and a first payment has already been made on the property. The Sponsors expect to commence construction in first quarter of 2008. In June 2005, IFC committed a $14.5 million A loan to finance part of a $69.0 million project to construct and operate a Greenfield medical complex (CMPDH) in the Zapopan district of Guadalajara, consisting of an ambulatory surgical center and a 90-bed general tertiary care hospital. Both facilities are now completed and operational. Both facilities also opened with inaugural year performance significantly above IFC projections (see Figure 1). Although the ambulatory surgical center has experienced slower growth than projected, the hospital more than compensates, having reported a gross profit almost four times IFC projections and is achieving EBITDA margins of almost 30%, only one year after opening. This makes CMPDH one of the most successful hospitals in IFC’s portfolio. CMPDH’s 2007 budget for the ambulatory and hospital (supported by results for the first quarter) exceeds initial projections.