Daiwa House Industry is entering the UK detached-home market by acquiring a 30% stake in local builder Miller Homes. The acquisition price is expected to be at least ¥70 billion, with the investment funded by a fund managed by Apollo Global Management.
Daiwa House Industry announced that it will enter the UK detached-home market by acquiring a 30% stake in local builder Miller Homes. The acquisition price has not been disclosed but is expected to be at least ¥70 billion, making this likely to be the largest overseas M&A transaction in Daiwa House’s history. The investment targets Miller Homes, which develops and supplies detached subdivision homes and affordable housing in the UK. The investment will be made by a fund managed by Apollo Global Management, a US-based fund manager.
Housing supply in the UK has slowed amid rising construction costs and higher interest rates, while the government has set long-term housing supply targets. Miller Homes develops and supplies subdivision homes and more affordable housing mainly in England and Scotland, and has outlined plans to acquire more residential land and increase the number of homes it supplies. The move is viewed as a strategy aimed at the UK market’s growth potential.
In Japan, Daiwa House’s detached-home business has been sluggish, and the company has indicated that it plans to scale back its sales offices for new detached homes. Its forecast operating margin for the domestic detached-home business in the fiscal year ending March 2027 is 3%, a low level, while persistently high mortgage rates have also affected its US business. The company is increasingly pursuing expansion into the UK as part of its overseas strategy.