Sumitomo Forestry Acquires Majority Stake in Metricon

Sumitomo Forestry Group, a prominent Tokyo-listed building corporation, has successfully acquired a 51 percent stake in the Australian construction company Metricon. This significant investment is valued at $115 million and marks Sumitomo’s initial purchase within an ongoing agreement to potentially acquire full ownership of Metricon over an undetermined period.

The acquisition also includes Sumitomo Forestry gaining influence over other residential builders such as Henley Properties, Scott Park business in Western Australia, and Wisdom in New South Wales. Sumitomo has confirmed that the majority of the financial proceeds will be directed to Metricon’s family stakeholders and director Ross Palazzesi.

The announcement coincides with Metricon recently being awarded projects worth over $100 million, notably a 483-home development in collaboration with the Queensland Government and its Housing Investment Fund. Brad Duggan, Metricon’s Chief Executive Officer, expressed optimism about the partnership, stating, “Metricon has worked hard over the past 24 months to return the group to its position of strength, and we are ecstatic that this work has resulted in the establishment of such an important partnership with Sumitomo Forestry.”

According to Duggan, Metricon’s business model remains intact, ensuring a seamless transition in terms of operation, structure, and branding. He reiterated that the internal projects and services offered by Metricon will continue unaffected by the acquisition.

Yasuhiro Odagane, Sumitomo Forestry Australia’s Managing Director, highlighted the acquisition as a strategic extension of the company’s business operations throughout Australia. “This acquisition enables our group to expand the business areas in each state, establishing Sumitomo Forestry as the number one builder in Australia and, most importantly, allowing us to make a substantial contribution to the provision of social infrastructure,” said Odagane.

Metricon, founded in 1976, is widely recognized for its extensive home-building heritage across Victoria, New South Wales, South-East Queensland, and South Australia. Following the acquisition, it will become a consolidated subsidiary of Sumitomo Forestry. Sumitomo Forestry, part of the Sumitomo Group conglomerate, is renowned for controlling substantial forest assets in Japan, boasting 40,500 hectares dedicated to sustainable forest management.