Japan’s biggest house builder has made a dramatic move into the UK housebuilding market after striking a multimillion-pound deal with Homes England and UK developer Urban Splash to build thousands of modular homes across the country.
Sekisui House has partnered with the government’s housing delivery agency Homes England and developer Urban Splash in a bid to increase the supply of homes in the UK using modern methods of construction.
The deal will see Sekisui House and a number of other partners invest in developer Urban Splash’s new ‘House’ development business, which will focus on the delivery of modular homes.
This investment will include £22m of new equity from Sekisui House, £35m from Urban Splash and £30m of equity and debt funding from Homes England.
Sekisui House will own a 35% stake in the business, Urban Splash will hold 55%, and Homes England will own 5% of the business.
Noel McKee, owner of We Buy Any Car, will also own 5% in exchange for a £2.5m equity investment.
Osaka-based Sekisui House was formed in 1960 and has delivered an estimated 2.4 million homes since. Last year, the company delivered 44,000 homes, 5% of the 942,000 homes delivered across Japan.
The company, which has a corporate philosophy of ‘with love and humanity’, also operates in China, Singapore, Australia and the US.
Housing minister Kit Malthouse said: “Sekisui House bring with them a proven track record in harnessing the modern methods of construction that are transforming homebuilding.
“Backed by government investment, today’s announcement will support our urgent mission to deliver more, better and faster home construction to ensure a new generation can realise the dream of homeownership.”
Yoshihiro Nakai, president and representative director of Sekisui House, said: “Using modern methods of construction to build high-quality homes with short build times is one of our company’s great strengths.
“Our technology and know-how can help resolve pressing social issues in the UK, and I want to see us play our part effective immediately.
“These operations can also help bring vitality to UK regions, and we will work to make the strongest connections with the local communities.”