Australia’s largest housebuilder Metricon is to be sold to Japanese construction giant Sumitomo Forestry for a reported $115 million.
The deal gives the Japanese group a 51 percent stake in Metricon with the potential for 100 percent ownership in the future.
It means around 12 per cent of all Australian homes will be built by foreign-owned companies, with Metricon joining Melbourne builder Henley – in which Sumitomo Forestry already has a controlling stake – and Sydney builder Simonds.
Metricon has been Australia’s largest housebuilder for almost a decade, making it an attractive asset for Sumitomo Forestry as housebuilding in Japan slows due to a declining population.
Metricon CEO Brad Duggan said after months of discussions and negotiations it was still “business as usual” at his Melbourne-based company.
“Metricon has worked hard over the past 24 months to return the group to its position of strength, and we are ecstatic that this work has resulted in the formation of such an important partnership with Sumitomo Forestry,” he said.
‘This collaboration increases Metricon’s willingness to respond to opportunities in the Australian housing market.
“Now more than ever, Australia’s housing industry needs strong participants to solve the issues it currently faces, and this partnership will further build on Metricon’s leading market position.”
Australia’s largest housebuilder Metricon will be sold to Japanese construction giant Sumitomo Forestry for a reported $115 million (a Metricon house is pictured)
Metricon CEO Brad Duggan (pictured) says Sumitomo Forestry is “an exceptional partner.”
Mr Duggan said Sumitomo Forestry is “an exceptional partner” that has “a commitment to excellence.”
“Together, we are confident that we will build a measured, long-term strategic future for Metricon, our team and our customers,” he added.
Sumitomo Forestry Australia’s managing director Yasuhiro Odagane said buying Metricon was key to helping the country tackle the housing shortage.
“This acquisition will enable our group to expand its operating areas in every state, making Sumitomo Forestry the number one builder in Australia and, most importantly, allowing us to make a substantial contribution to the provision of social infrastructure,” said he.
Sumitomo is set to acquire a controlling stake in Australia’s two largest housebuilders: Metricon and Henley.
Mr Duggan assured customers that Metricon will maintain its own business model, meaning there will be minimal changes to its structure, service, market offering or brand.
“It will be business as usual in our exhibition homes, construction sites, our Studio M selection centers and offices,” he said.
The deal sees Sumitomo Forestry acquire a 51 percent stake in Metricon with the potential for 100 percent ownership in the future (pictured is a Metricon house)
“Our customers can continue to expect the same high level of service and design, with the opportunity for even better customer outcomes through this partnership in both the short and long term.”
The Melbourne CEO said he expected a “strategic partnership” with Sumitomo would strengthen Metricon’s position in the industry.
Metricon employs around 2,500 people across Australia and started building around 3,900 homes in the last financial year.
Sumitomo Forestry first entered the Australian construction industry in 2008. The acquisition of 51 percent of Metricon is expected to be completed by the end of 2024.