search

The Real Deal Logo

Trending

Trump accused of making false statements about $50M Chicago tower loanTrump accused of making false statements about $50M Chicago tower loanHGTV’s “Mr. Flip It” gets four years in jail for $10M fraudHGTV’s “Mr. Flip It” gets four years in jail for $10M fraudOnmibuild sues HFZ, lenders on High Line projectOnmibuild sues HFZ, lenders on High Line projectH-E-B snags 21 acres in Celina, hinting at development boomH-E-B snags 21 acres in Celina, hinting at development boom
Residential
Texas

Hot Texas housing market lures Japanese developer

Texas-based Chesmar Homes will now be a part of the Sekisui House corporate family

From left: Sekisui House's CEO Yoshihiro Nakai and Chesmar's CEO Don Klein (Sekisui House, Chesmar, iStock)
From left: Sekisui House's CEO Yoshihiro Nakai and Chesmar's CEO Don Klein (Sekisui House, Chesmar, iStock)

Japanese home builder Sekisui House closed on the purchase of one of Texas’ biggest home builders as it expands internationally.

Sekisui paid $514 million for Chesmar Homes and three of its affiliate entities—financial services companies CLM Mortgage, N Title, Inc. and Entitled Insurance Agency—from Chesmar Group. The acquisition was announced last week along with the notice that the newly formed Chesmar Holdings will now operate as a specified subsidiary of the Sekisui House.

The deal is a part of the company’s 30-year plan to “make home the happiest place in the world” through overseas expansion, according to the announcement. Sekisui’s ultimate goal is to supply 10,000 homes per year for global markets outside of Japan by fiscal 2025.

“We look forward to being part of Sekisui House’s collection of companies and supporting its goal of creating over 10,000 happy customers annually in its international markets,” said Don Klein, founder and CEO of Chesmar.

Sign Up for the undefined Newsletter

In 2017, the company established its first wholly owned subsidiary in the U.S. with Woodside Home Company, which operates in Utah, California, Arizona, and Nevada. Last year, it expanded to Oregon and Washington with the founding of Holt Group Holdings. The two subsidiaries closed on a combined 3,424 single family lots in 2021.

Now the Japanese developer has set its sights on Texas.

“Chesmar operates in Texas, the largest housing market in the United States, and has achieved
high asset efficiency and steady growth as a builder,” the company said. “The addition of Chesmar to the Sekisui House family enables us to gain immediate scale in several leading markets in the attractive Texas region.”

Chesmar manages over 6,000 single family lots across Houston, San Antonio, Austin and Dallas-Fort Worth areas. The developer closed on 2,082 homes in 2021.

Read more

Tags
HomebuildersMnA