Landsea Homes has expanded further into the Florida market with a $250-million acquisition of Hanover Family Builders of Orlando.
The Newport Beach-based developer inked the deal by paying $179.3 million in cash and by assuming $69.3 million in Hanover debt, the Orange County Business Journal reported.
The purchase by publicly traded Landsea Homes – an affiliate of a China-based development firm – marks its second Florida acquisition, following a $55-million purchase of Vintage Estate Homes last year.
Landsea Homes, founded in 2013, last year surpassed $1 billion in sales.
“This transaction vaults Landsea Homes into one of the leading positions in the Orlando area, a very attractive homebuilding market, and reaffirms our strategy of quickly becoming one of the top homebuilders in the markets we serve,” said its CEO, John Ho, in a statement.
“Additionally, Hanover’s focus on the more affordable segments of the market aligns strongly with our broader product positioning goals.”
Hanover Family Builders, founded five years ago by three brothers from the Orosz family, topped $200 million in sales in 2021, closing 632 homes at an average selling price of $328,323. It ended the year with more than 4,100 lots under control, 469 homes in backlog worth more than $200 million and 18 active communities, according to Landsea.
Ho said the purchase increases the number of lots under Landsea’s control to more than 12,800.
Landsea went public via an SPAC merger in 2021, and has a current market cap of around $336 million, making it the most valuable publicly traded developer in Orange County, according to the O.C. Business Journal.
Along with Southern California and Florida, its primary markets are in Arizona, Texas, and the New York metro area.
The company is part of the much larger Landsea Group, a real estate development company founded in Nanjing, China in 2001.
Landsea Group started its business by building thousands of homes a year in mainland China, Hong Kong and Germany. In 2013, it expanded into the U.S. by starting Landsea Homes in California.
[OCBJ] – Dana Bartholomew