OSAKA, Japan, Jan. 4, 2018 /PRNewswire/ — The Daiwa House Group’s Stanley-Martin Communities, LLC (“Stanley–Martin“) concluded a business transfer agreement with FD Communities, LLC (“FrontDoor”), aR single-family housing business in the USA, on December 20, 2017. FrontDoor’s operations, which are primarily in the urban areas of Atlanta, Georgia, and Charleston, South Carolina, are scheduled to be taken over by the end of January 2018.
(Image: Example of single-family houses built by FrontDoor
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1. Reasons for the business takeover
In the year ending March 2019, which is the final fiscal year of the Daiwa House Group’s 5th Medium-Term Management Plan, the Daiwa House Group, led by Daiwa House Industry Co., Ltd., is advocating ideas to create a base for net sales of 4 trillion yen to provide for future environmental changes. In overseas businesses, the Group aims to reach net sales of 250 billion yen in the year ending March 2019. This will be done via the key objective of accelerating overseas expansion in the USA and Australia where stable growth is expected, as well as focusing on the ASEAN region that is likely to continue medium- to long-term growth.
In America, Stanley–Martin, which is involved in single-family housing in the eastern states of Virginia, North Carolina and Maryland, became a subsidiary of Daiwa House USA Inc. (Head office: Delaware, USA, President: Takeshi Kosokabe) on February 13, 2017, and tapped into the housing business of the Group in the USA.
In this context, the Group plans to expand its business area in the USA through Stanley–Martin’s acquisition of substantially all of the single-family housing business of FrontDoor located in Georgia and South Carolina.
2. Businesses and assets subject to takeover
FrontDoor is currently operating its single-family housing businesses in the states of Georgia, South Carolina and Florida. However, Stanley–Martin is only planning to acquire the assets located in Georgia and South Carolina. The acquisition by Stanley–Martin will include real estate assets held directly by FrontDoor in 12 locations and equity interests in 6 joint ventures as well as management and employees that will join Stanley–Martin.
3. Process & schedule
December 5, 2017: Resolution of Board of Directors of Stanley–Martin
December 20, 2017: Concluding date for business transfer agreement
End of January 2018 (scheduled): Implementation of business transfer
4. Impact on results
The effects of this business takeover on the consolidated results of the Group will be immaterial.
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SOURCE Daiwa House Industry Co., Ltd.