Mattamy Homes COO Brian Johnston doesn't mince words in conveying the importance of his company—the nation’s largest new-home builder—buying Monarch Corp for $330M: “This acquisition, in one stroke, puts us in the high-rise business in a significant way.”
Both Brian (seen above) and Mattamy’s Canadian president Brad Carr previously worked as executives at Monarch. With high-rise representing 50% of GTA new-home sales, “it's an imperative for us to get into that aspect of the business,” Mattamy VP communications Brent Carey tells Bisnow. “It’s been something that’s been on our to-do list for a while now.” The goal, he says, is to diversify product mix to reduce risk, and appeal to a "broader spectrum" of customers.
As noted by Brian, the acquisition of his former firm Monarch—the deal is expected to close in Q1 2015, pending Canadian Competition Bureau approval—will immediately give Mattamy a fully operating high-rise division with several projects on the go across the city, including Picasso, a 39-storey tower (shown above) under construction on Richmond Street West. Monarch—the Canadian division of US homebuilder Taylor Morrison Home Corp—is also developing Riva del Lago, the latest of its condo buildings in Humber Bay on the Etobicoke waterfront.
Mattamy founder and CEO Peter Gilgan (pictured with son Luke in September) noted the Monarch deal, in addition to vaulting his firm into the high-rise world, will “enhance our already significant footprint in Ontario." Monarch has housing developments in places like Whitby, Caledon, Kitchener and Ottawa—markets where Mattamy builds, too. In the GTA, Brent notes, Canada's largest new home builder is "way out in front" of the competition. “And this will expand our presence in our core markets.”
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