RESTON, Va., Oct. 26, 2016 /PRNewswire/ -- Daiwa House Group announced today that its Daiwa House USA subsidiary has entered into an agreement to acquire 82% of the member interests in Stanley-Martin Communities, LLC. The transaction is expected to close in December 2016.
Stanley Martin has been building in the Washington D.C. metropolitan area for 50 years. It is a leading builder in the metro Washington D.C., Richmond, Charlottesville, and Raleigh housing markets. For the twelve months ending September 30, 2016, Stanley Martin had total revenues of approximately $500 million. For the same period, Stanley Martin's homebuilding operations had 902 home sales and 821 home closings, and as of September 30, 2016, had 8,700 lots owned or optioned.
Stanley Martin also owns a majority interest in First Heritage Mortgage and First Excel Title. First Heritage Mortgage is an independent mortgage banker which closed $1.2 billion in home mortgages for the twelve months ending September 30, 2016. First Excel Title is in the title insurance and settlement services business in the Washington D.C. metropolitan area and closed 1,252 transactions for the twelve months ending September 30, 2016.
Daiwa House Group is the largest homebuilding company based in Japan. It has been expanding its international operations in China, Southeast Asia, and Australia, and in 2014 it entered the U.S. rental multifamily housing business through a joint venture arrangement with Lincoln Property Company. Daiwa House's long range plan places a strong emphasis on expansion in the United States housing market, and its investment in Stanley Martin is a major milestone in achieving that plan.
"Having previously lived in Japan and worked with Japanese companies, I am enthusiastic about the opportunity for Stanley Martin to succeed and grow as part of the Daiwa House Group," said Steven Alloy, President of Stanley Martin. "I have been particularly impressed with the customer focus and commitment to quality at Daiwa House, and I think they are an excellent fit for Stanley Martin. The U.S. housing market is positioned for substantial growth, and with our new relationship with Daiwa House, I am excited about the future of Stanley Martin."
Moelis & Company LLC served as financial advisor and Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal advisor to Stanley Martin. SMBC Nikko served as financial advisor and Baker & McKenzie served as legal advisor to Daiwa House.
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SOURCE Stanley-Martin Communities, LLC