Sekisui House, Japan’s largest housebuilder, has announced an investment in the UK housing market.
The housebuilder will work with Homes England and private property regeneration company Urban Splash to deliver thousands of new modular homes, according to the government.
The agreement will see Urban Splash invest £37.5m in equity, Sekisui House put forward £21.9m, and Homes England supply £3.1m in equity and £26.9m in debt funding, totally nearly £90m.
As part of the deal, the Japanese housebuilder will take a 35 per cent equity stake in Urban Splash’s modular house business.
Sekisui House president and representative director Yoshihiro Nakai comments: “We are extremely pleased to be able to work together with Homes England and Urban Splash to establish our operations and help to create outstanding communities in the UK.
“Using modern methods of construction to build high quality homes with short build times is one of our company’s 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.”
Minister of state for housing Kit Malthouse MP says: “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 home ownership.”
Chair of Homes England Sir Edward Lister adds: “When Homes England launched last year, we said we would disrupt the housing market to increase the pace of construction.
“By helping bring one of the world’s largest and most innovative housebuilders to UK shores, we are putting our money where our mouth is.
“By creating a more diverse landscape – where smaller builders such as Urban Splash get a stronger foothold – we are rebuilding the building industry; driving up quality and improving consumer choice.”
Urban Splash chairman Tom Bloxham MBE says: “Having looked far and wide we chose Sekisui House from Japan because of the company’s unrivalled global experience in modular construction and shared values and philosophy that we are making homes not units, and a joint belief in the need for a green future.
“We are also proud to partner with Homes England – part of the UK government – because of their commitment to modular and desire to grow capacity in the UK housing business.”