Australia’s largest housebuilder Metricon is to be sold to Japanese construction giant Sumitomo Forestry for $115 million.
The deal will see the Japanese group acquire a 51 percent stake in Metricon with the potential to reach 100 percent ownership in the future.
This 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 majority 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 declines in Japan due to its falling population.
Metricon chief executive Brad Duggan said after months of discussions and negotiations, things are 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 delighted that this work has resulted in the establishment of such an important partnership with Sumitomo Forestry,” he said.
‘This partnership enhances Metricon’s readiness to respond to opportunities in the Australian property market.
“The Australian property industry, more than ever, needs strong players to solve the problems it currently faces, and this partnership will further strengthen Metricon’s leadership position in the market.”
Australia’s largest housebuilder Metricon to sell to Japanese construction giant Sumitomo Forestry for $115 million (Metricon home pictured)
Metricon CEO Brad Duggan (pictured) said Sumitomo Forestry is “an exceptional partner”
Duggan said Sumitomo Forestry is “an exceptional partner” that has a “commitment to excellence.”
“Together we are confident that we will build a thoughtful long-term strategic future for Metricon, our team and our customers,” he added.
Sumitomo Forestry Australia managing director Yasuhiro Odagane said purchasing Metricon is key to helping it address the country’s housing shortage.
“This acquisition allows our group to expand business areas in each state, establishing Sumitomo Forestry as the number one builder in Australia and, most importantly, allowing us to make a substantial contribution to the provision of social infrastructure,” he said.
Sumitomo is about to acquire a majority stake in Australia’s two largest housebuilders – Metricon and Henley.
Duggan assured clients that Metricon will maintain its own operating model, meaning there will be minimal changes to its structure, service, market offerings or brand.
“Everything will remain the same in our showrooms, on construction sites, in our Studio M selection centers and in our offices,” he said.
The deal will see Sumitomo Forestry acquire a 51 percent stake in Metricon with the potential to own 100 percent in the future (pictured, a Metricon home)
“Our customers can continue to expect the same great level of service and design, with the likelihood of even better results from this partnership in both the short and long term.”
The Melbourne CEO said he hoped a “strategic partnership” with Sumitomo would strengthen Metricon’s position in the industry.
Metricon employs around 2,500 people across Australia and has started construction on around 3,900 homes in the last financial year.
Sumitomo Forestry first entered Australia’s construction sector in 2008. Its acquisition of 51 percent of Metricon is expected to be completed by the end of 2024.