Click here to see “Part 2” of this post
Chedraui and Slim family members invested together in a Texas land deal that opens a window into what they currently own in the United States. Today some of the business that members of both families conduct in the United States involves some of the Americans that were involved with the land deal before and during the Chedraui-Slim partnership’s ownership from 1985 through 1997.
This is the first in a series ChedrauiLeaks is publishing to take a closer look at the Chedraui-Slim joint investment, the people involved, and what members of the Chedraui and Slim families own in the United States today.
At the start of the land deal in 1985, the Chedrauis were wealthy, but Antonio Chedraui Caram and his family only owned six stores through Tiendas Chedraui SA de CV, a predecessor of Grupo Chedraui. At the same time, Carlos Slim was well on his way to making his family one of the richest on the planet. In 1984, Slim created Grupo Financiero Inbursa. By 1985, Carlos Slim’s Grupo Carso acquired a majority stake in Sanborns, and in 1990 the group acquired Telmex in partnership with SBC and France Telecom. In 1995, Grupo Chedraui made its first investment in Bodega Latina (the United States company that operates El Super), and in 1996, the year before the investment partnership ended, the Chedrauis were worth around $250 million as reported by the Wall Street Journal. Meanwhile, Mexico went through two massive economic crises in the mid-1980s and mid-1990s.
The Chedraui share of the partnership was initially 50% (later 65%), while Carlos Slim’s brother and brother-in-law owned 20% total. The partnership was named 17.2, Ltd., and it was formed in 1985 for the purpose of buying land along a highway in the country outside Houston for $447,000. The partnership bought the land shortly after it was formed .
Antonio Chedraui initially pledged $80,000 up front for his 50% stake plus at least $258,000 over the following 10 years to cover a proportional share of the balance owed on the property (including interest). We believe this was Antonio Chedraui Caram, based on the later involvement of his sons Antonio Chedraui Obeso and Alfredo Chedraui Obeso.
Carlos Slim’s brother, José Slim and his brother-in-law Michel Khoury each pledged $16,000 up front and at least $51,700 over ten years in return for 10% each.
In 1994, the partnership was amended to increase the Chedraui share to 65%, split among Alfredo Chedraui Obeso and Antonio Chedraui Obeso. (Antonio Chedraui Caram died in 1988.) Alfredo Chedraui Obeso also stepped in as General Partner at that time. Michel Khoury retained his 10% stake. José Slim’s stake was by then held through his estate (he had died in 1990) with Julian Slim, the oldest brother of Carlos and José, as executor. The 1994 amendment contained language stating that it would not be effective until it was filed with the State of Texas, but that did not occur for another three years (June 20, 1997, a few weeks before the land was sold).
The partnership sold its land in 1997 and its Texas registration was cancelled the same year.
Documents:
• 1985 Certificate of Limited Partnership
• 1985 Deed
• 1985 Deed of Trust
• Amendment to Original Certificate of Limited Partnership
• 1997 Deed
• 1997 Cancellation