Australia’s largest home builder quietly sold
Japanese giant Sumitomo Forestry Group will become Australia’s biggest residential builder after quietly making the major business play for Metricon Homes.
The two-part deal, which has cleared the Foreign Investment Review Board, prices the 47 year old company at $225.5 million.
The first instalment, for 51 per cent, is set to be paid by December.
Upon finalisation, Metricon is expected to be listed on the Tokyo stock exchange as a SFG subsidiary.
Trading as Sumitomo Australia Pty Ltd since it arrived in Australia in 2008, the Japanese group bought a half interest in Henley Homes the year later – upped to 70pc in 2020.
It has also taken full stakes in Perth’s Scott Park Group and Wisdom Homes, which was Sydney based.
Sumitomo jumps to top amid smoke, mirrors
Established by late businessmen George Kline and Mario Biasin, Metricon is the country’s biggest builder, behind nearly 4000 dwellings starts last financial year.
Based in Ferntree Gully, employing about 2500, the group is understood to have been seeking a buyer since just before COVID.
Two years ago it was subject to extreme media speculation of a collapse (story continues below).
Sale proceeds will flow to the Biasin family and current company directors including Ross Palazzes and Peter Langfelder – who in that year reportedly injected $30m to be seen to improve stability.
The SFG deal comes 18 months since rival Porter Davis, then Australia’s 12th biggest builder according to the Housing Industry Association, crumbled, with work stopping on some 1700 sites, the bulk (c1500) in Victoria.
Metricon, Henley to stay competitors
Henley – Australia’s fourth largest builder – and Metricon will continue to operate independently.
“This is not a merger of operations and will not impact our current or future customers with the building of their homes” the buyer said in a statement.
“There will be no sharing of information or collaboration between the businesses,” according to it.
Information related to pricing or terms and conditions for suppliers and subcontractors will also not be shared, the group added.
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