Japan's Sekisui House forays into UK housing market

WCN Editorial Team 14 May 2019 EUROPE BUILDINGS

Japanese house builder Sekisui House has made its first move into the UK market following the signing of a multimillion-pound deal with Homes England, a government organization, and real estate company Urban Splash.

The Japanese firm has agreed to acquire 35% stake in Manchester-based Urban Splash’s modular House business.

Additionally, the firm agreed to form partnership with Homes England, the new housing delivery organisation, to contribute to the revitalisation of the UK market.

Sekisui said that £90m will be invested by the three firms in new joint venture to provide significant boost to the modular housing industry in the UK and help in accelerating production of new homes.

Sekisui House president and representative director Yoshihiro Nakai said: “Using modern methods of construction to build high quality homes with short build times is one of our companyʼs great strengths.

"Our technology and know-how can help resolve pressing social issues in the UK, and I want to see us play our part effective immediately.

"These operations can also help bring vitality to UK regions, and we will work to make the strongest connections with the local communities.”

Facilitated by lead real estate and financial advisor JLL, the £90m deal comprises a total new investment of £55m into regeneration company Urban Splash’s ‘House’ development business.

Sekisui House said it has invested £22m of new equity, while the Government’s Home Building Fund, administered through Homes England, has provided £30m in equity and debt funding.

Additionally, We Buy Any Car founder Noel McKee has made investment in the new partnership in exchange for 5% stake.

UK Minister of State for Housing Kit Malthouse said: “Sekisui House bring with them a proven track record in harnessing the modern methods of construction that are transforming home building.

“Backed by Government investment, todayʼs announcement will support our urgent mission to deliver more, better and faster home construction to ensure a new generation can realise the dream of home ownership.”

Urban Splash chairman Tom Bloxham said: "We are also proud to partner with Homes England – part of the UK Government – because of their commitment to modular and desire to grow capacity in the UK housing business.”

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Image: Japan's Sekisui House moves into UK housing market. Photo: courtesy of Crown copyright.

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