According to The Australian Financial Review, Japan's Asahi Kasei Homes has joined the wave of Japanese companies buying into the Australian housing boom after acquiring a 40 per cent stake in Newcastle-based McDonald Jones Homes, the country's sixth biggest detached home builder and biggest in NSW.
AKH joins the likes of Sekisui House (Central Park Sydney), Sumitomo Forestry Group (majority owner of home builders Wisdom Group and Henly Group), Obayashi Corporation and construction giant Kajima (majority owner of Melbourne builder and developer Icon) with big presences in the Australian residential building sector as they struggle for growth opportunities in the weaker Japanese economy.
AKH, a subsidiary of listed Japanese conglomerate Asahi Kasei Corporation, delivers over 8000 homes a year and has a target of reaching net sales of ¥1 trillion ($11.3 billion) by 2025.
MJH Group is expected to generate $620 million in revenue in FY17, up from $486 million in FY16. Profits lifted 57 per cent to $10.5 million in FY16.
Founder Bill McDonald, chairman Peter Durbin and managing director Andrew Helmers will each retain 20 per cent shares in MJH Group with AKH to gain seats on the company board.
Mr Helmers said "The expansion into the Australian market by AKH enhances our already robust financial position, and provides new opportunities in research and development, home design and construction which will be of great benefit to our customers," Mr Helmers said.
"The housing market has come off it its peak, but there's an under-supply of homes in Australia and NSW so it will settle at a much higher level [than in the past]."
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