Daiwa House recently announced that it would acquire US-based housing developer Trumark Companies based in California. After acquiring 60% of the company's shares, they plan to make an additional investment and increase their stake to 80%. The total acquisition amount was undisclosed, but estimates place it at 10 billion yen (90 Million USD).
Trumark, which is engaged in urban development and single-family housing sales on the west coast of the U.S., will become a subsidiary of Daiwa House and strengthen its business operations in the United States.
Daiwa House's U.S. subsidiary will begin the merger on February 1 and complete the acquisition later in the year. Truemark sells around 430 new homes per year. Although the business scale is small, the company's strength is in residential urban development. At present, 21 sites are under construction for a total of 3,100 units. Under the leadership of Daiwa House, the new company is expected to speed up its growth. Previous projects from Trumark were funded by the help of individual investors but with the capital infusion from Daiwa House that will no longer be necessary.
Daiwa House now operates on the east coast, west coast, and southern region of the United States, where population growth is high. Previously the company only operated in the rental housing business. This year Daiwa House plans to increase sales in North America to 155 billion yen (1.4 million USD), a 50% increase from 2018.
Source: Nikkei
Editorial Department
Bringing you the latest real estate & lifestyle news in Japan
