With a shrinking population at home, Japanese prefab housing pioneer Daiwa House Group has agreed to buy a regional US house builder for $251m.
Image via Stanley Martin
The group, said to be Japan’s biggest house builder, will acquire 82% of Reston, Virginia-headquartered Stanley Martin Homes.
Active in the Washington, DC area since 1966, Stanley Martin had total revenues of approximately $500m in the year to 30 September 2016, the company said in announcing the acquisition on 26 October.
The deal, expected to close in December this year, is part of Daiwa’s plan for "aggressive investments in real estate development" and to "accelerate overseas expansion", particularly in the US, Australia and Asia countries, the group said in its press notice.
"Having previously lived in Japan and worked with Japanese companies, I am enthusiastic about the opportunity for Stanley Martin to succeed and grow as part of the Daiwa House Group," said Steven Alloy, President of Stanley Martin.
"I have been particularly impressed with the customer focus and commitment to quality at Daiwa House, and I think they are an excellent fit for Stanley Martin. The US housing market is positioned for substantial growth, and with our new relationship with Daiwa House, I am excited about the future of Stanley Martin."
In 2014 Daiwa entered the US rental multifamily housing business through a joint venture arrangement with Lincoln Property Company.