Australia’s biggest home builder Metricon to be sold to Japanese construction giant for $115million

Australia’s biggest home builder Metricon will be sold to Japanese construction giant Sumitomo Forestry for a reported $115million. 

The deal will see the Japanese group acquire a 51 per cent stake in Metricon with the potential for 100 per cent ownership in the future. 

It means that about 12 per cent of all Aussie homes will be built by foreign-owned companies, with Metricon joining Melbourne builder Henley – in which Sumitomo Forestry already has a controlling stake – and Sydney builder Simonds.

Metricon has been Australia’s biggest home builder for almost a decade, making it an attractive asset to Sumitomo Forestry as homebuilding is declining in Japan due to its falling population. 

Metricon CEO Brad Duggan described the ownership change as a partnership that will help tackle Australia’s home shortage and consequent high prices.

‘Metricon has worked hard over the past 24 months to return the group to its position of strength, and we are ecstatic that this work has resulted in the establishment of such an important partnership with Sumitomo Forestry,’ he said. 

‘The Australian housing industry, more than ever, needs strong participants to solve the issues it currently faces, and this partnership will further build Metricon’s market leading position.’

Metricon CEO Brad Duggan (pictured) said Sumitomo Forestry is ‘an exceptional partner’

Sumitomo Forestry Australia’s managing director Yasuhiro Odagane said the company will secure its position as the nation’s biggest home builder..

‘This acquisition enables our group to expand the business areas in each state, establishing Sumitomo Forestry as the number one builder in Australia and, most importantly, allowing us to make a substantial contribution to the provision of social infrastructure,’ he said. 

Mr Duggan assured customers there will be minimal change to Metricon’s structure, service, market offerings or brand.

‘It will be business as usual at our display homes, building sites, our Studio M selection centres, and offices,’ he said. 

The deal will see Sumitomo Forestry acquire a 51 per cent stake in Metricon with the potential for 100 per cent ownership in the future (pictured is a Metricon home)

‘Our customers can continue to expect the same great level of service and design, with the likelihood of even greater customer outcomes because of this partnership in both the short and long term.’

Metricon employs around 2,500 people across Australia and in the past financial year has commenced about 3,900 home builds. 

Sumitomo Forestry first entered Australia’s construction sector in 2008. Its takeover of 51 per cent of Metricon is expected to be completed by the end of 2024.