February 20, 2023
Asahi Kasei Homes Corp.

Asahi Kasei Homes concluded an agreement to acquire Arden Homes Pty Ltd, an Australian home builder operating in the state of Victoria, on February 10, 2023 (Australian Eastern Daylight Time) through its Australian subsidiary NXT Building Group Pty Ltd (“NXT”, formerly McDonald Jones Homes Pty Ltd), and completed the acquisition on February 17, 2023.

While strengthening its core business of order-built homes in Japan, Asahi Kasei Homes considers the Australian and North American businesses to be important sources of additional growth. These are positioned as one of the Asahi Kasei Group’s “10 Growth Gears” (GG10), businesses to lead the next phase of growth in fields of focus as part of its medium-term management plan for fiscal 2024 focused on the theme “Be a Trailblazer.”

Asahi Kasei Homes acquired NXT, one of Australia’s largest home builders, in 2021. NXT has been steadily increasing market share by expanding its operating area from New South Wales, where it originally started its business, to other states through organic growth and acquisitions of local home builders*. NXT is currently working with a steel frame supplier acquired in 2020 for enhanced home construction, while leveraging Asahi Kasei Homes’ industrialized home building expertise to shorten construction time and improve productivity.

As stable demand growth is anticipated, Asahi Kasei Homes and NXT have decided to enter the market of Victoria, with the aim of further growth in the Australian market.

• *In addition to New South Wales, NXT currently operates in Australian Capital Territory, Queensland, South Australia, and Tasmania.

Victoria is the largest detached house market in Australia, accounting for approximately 30% of the total, and increasing housing demand is supported by population growth and an abundant supply of residential land.

With more than 10 years of experience, Arden Homes has an established business base including display homes. With a main customer base similar to that of NXT, Arden Homes is an ideal partner for expansion into the state of Victoria.

Asahi Kasei Homes and NXT will work closely with the current management team of Arden Homes, which has in-depth knowledge and experience of the Victorian market, to further grow the home-building business in Australia.

Profile of Arden Homes Pty Ltd

Trade name

Arden Homes Pty Ltd

Representatives

Dean Morrison, Craig Fowler

Head office

Scoresby, Victoria, Australia

Established

2010

Number of employees

93 (as of the end of January 2023)

Business

Construction of residential homes

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