Tuesday 14 May 2019 12:14 pm

Japanese property giant strikes £90m deal with Urban Splash to build thousands of new homes across the UK

Japan’s largest housebuilder is entering the UK property market after signing a £90m deal with developers to deliver thousands of new homes across the country.

In a joint venture with Homes England and Urban Splash, leading modular builder Sekisui House is planning to deliver 2,000 new residential homes a year for the next decade.

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The investment, which will involve Sekisui taking a 35 per cent stake in Urban Splash’s modular business, will involve modern methods of construction where houses are built off-site and then delivered to a location once they have been completed.

Yoshihiro Nakai, president of Sekisui House, said: "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."

Sekisui is set to inject £22m of new equity into the project.

We Buy Any Car founder Noel McKee has snapped up a five per cent stake in the deal and the government’s home building fund, administered through Homes England, has committed £30m of equity and debt funding.

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Housing minister Kit Malthouse said: "Sekisui House bring with them a proven track record in harnessing the modern methods of construction that are transforming home building. 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."

The deal was facilitated by lead advisor JLL.