Japanese homebuilder Sekisui House has completed the purchase of one of Texas’ largest homebuilders as it expands internationally.
Sekisui paid $514 million for Chesmar Homes and three of its affiliates – financial services companies CLM Mortgage, N Title, Inc. and Entitled Insurance Agency – of the Chesmar Group. The acquisition was announced last week with the notice that the new company Chesmar Holdings will henceforth operate as a specific subsidiary of the Sekisui house.
The deal is 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 FY2025.
“We look forward to becoming part of Sekisui House’s collection of businesses and supporting its goal of creating more than 10,000 satisfied customers each year in its international markets,” said Don Klein, Founder and CEO of Chesmar.
In 2017, the company established its first wholly owned subsidiary in the United States with Woodside Home Company, which operates in Utah, California, Arizona and Nevada. Last year it expanded to Oregon and Washington with the creation of Holt Group Holdings. The two subsidiaries closed on a combined total of 3,424 single-family lots in 2021.
Now the Japanese developer has set its sights on Texas.
“Chesmar operates in Texas, the largest real estate market in the United States, and has achieved
high asset efficiency and steady growth as a builder,” the company said. “Adding Chesmar to the Sekisui House family allows us to gain immediate scale in several top markets in the attractive Texas region.”
Chesmar manages more than 6,000 single-family lots in the Houston, San Antonio, Austin and Dallas-Fort Worth areas. The developer closed 2,082 units in 2021.