Brookfield, North America Sekisui House Expand Partnership To $1.6B In U.S. Real Estate
Brookfield Residential and North America Sekisui House announced the expansion of an existing partnership between the two, with the U.S. portfolio owned by the pair growing to $1.6B.
NASH is the U.S. arm of Japan-based Sekisui House Ltd., one of the world's largest homebuilders. In January 2024, Sekisui House announced it was buying homebuilder MDC Holdings, which builds under Richmond American Homes, in an all-cash transaction valued at $4.9B.
Financial details of NASH's investment in Brookfield Residential's communities were not disclosed, but the expansion was sealed by NASH investing in five Brookfield master-planned communities.
NASH and Brookfield Residential did not immediately respond to requests for comment.
It is unclear when the Brookfield Residential and NASH partnership began, though when Brookfield bought homebuilder Newland Real Estate Group in 2021, the deal included Newland's stake in a joint venture with NASH dating back to 2010 that expanded over the years to include more than two dozen master-planned communities in 11 states.
The Brookfield Residential and NASH combined managed portfolio has approximately 30,000 single-family lots under management in markets including Austin, Phoenix, Denver and Northern California, the partnership announced.
2024 was a solid year for homebuilder mergers and acquisitions, Builder Online reported last year, with six deals announced in the first six weeks of the year alone.
"There have never been more buyers with more money from more places in the world,” Margaret Whelan, founder and CEO of Whelan Advisory, told Builder Online in November. “Anyone who is thinking about selling their company always wants to try and maximize their value. And what they are seeing today is the valuation multiples are as high as they have ever been before."
