Asahi Kasei Homes and McDonald Jones Homes form capital alliance

August 1, 2017
Asahi Kasei Homes Corp.

Asahi Kasei Homes Corp. has acquired 40% of the shares of McDonald Jones Homes Pty Ltd, an Australian company which constructs and sells unit homes, based on an agreement between the two companies dated June 26, 2017. Acquisition of the shares was completed on July 31, 2017.


Under the medium-term management initiative “Cs for Tomorrow 2018” of Asahi Kasei Corp., parent company of Asahi Kasei Homes, the Asahi Kasei Group is targeting net sales of ¥1 trillion and operating income of ¥100 billion in the Homes sector in fiscal 2025. While continuing to expand its existing business centered on Hebel Haus™ order-built unit homes, Asahi Kasei Homes is also working to create new business in new fields with new business models, and overseas business is one area identified for new business creation. Asahi Kasei Homes began overseas business in Taiwan through its subsidiary Asahi Kasei Realty & Residence Corp. Its first condominium development project, in New Taipei City, went on sale in 2016, and several other condominium developments are planned.

In addition to the condominium development business in Taiwan, Asahi Kasei Homes explored new business opportunities to leverage its strengths in other regions, including Australia. As a result of careful study, Asahi Kasei Homes decided to enter the unit-homes business in Australia centered on order-built homes through a capital alliance with McDonald Jones Homes. Rather than selling Hebel Haus™ products in Australia, the alliance will leverage the know-how accumulated by Asahi Kasei Homes in Japan to gain synergies with McDonald Jones Homes to expand the unit-homes business in Australia.

2.Reason for capital alliance with McDonald Jones Homes

1)Strength of geographical focus for unit homes in Australia

Demand for unit homes in Australia is concentrated on the east coast of the country, with some 70% accounted for in the three states of New South Wales, Victoria, and Queensland, where the three most populous cities, Sydney, Melbourne, and Brisbane, are located. Based in Newcastle, New South Wales, in the vicinity of Sydney, McDonald Jones Homes is ranked No. 6 in 2016 for unit-home starts in Australia and ranked No. 1 in New South Wales,* the market that holds the greatest promise in Australia fuelled by a continuously growing population.

2)Potential to leverage Asahi Kasei Homes’ know-how in design standardization and commercialization

Australian unit homes are generally wood-framed one-storey homes or brick homes. The mainstay products of McDonald Jones Homes are homes with a steel-frame structure, including those with autoclaved aerated concrete (AAC) exterior walls. Asahi Kasei Homes believes this presents an outstanding opportunity to leverage the know-how it has accumulated in its own order-built Hebel Haus™ unit-homes operation. Especially against a backdrop of cost pressures due to a shortage of construction workers, it is believed to be possible to reduce construction costs while raising construction capacity by combining the marketing and technical strengths of McDonald Jones Homes, Australia›s leader in the field of steel-frame unit-homes, with the know-how of Asahi Kasei Homes in standardization and systemization.

3)Long-life residence strategy and compatible company visions

Based on a belief in “people being at the center of our business,” McDonald Jones Homes operates under the principle of being the most trusted home builder with the highest standards, which is aligned with the Asahi Kasei Homes vision of realizing long-life homes that provide ongoing customer satisfaction. Through its capital alliance with McDonald Jones Homes, Asahi Kasei Homes looks forward to achieving sustainable growth and expansion of its operations in the Homes sector.

3.Outline of capital alliance

Asahi Kasei Homes acquired a 40% equity interest in McDonald Jones Homes by purchasing a portion of the shares held by existing shareholders including the founder (see below), and by purchasing all shares newly issued by McDonald Jones Homes.

  Prior to share acquisition After share acquisition
Bill McDonald 33.3% 20%
Andrew Helmers 33.3% 20%
Peter Durbin 33.3% 20%
Asahi Kasei Homes   40%

4.Overview of McDonald Jones Homes Pty Ltd

Managing Director
Bill McDonald / Andrew Helmers
Corporate office
Newcastle, New South Wales, Australia
Approx. 660
Construction of order-built homes and sale of pre-built homes
Number of site starts
Approx. 1,800 (FY2017 forecast)
Approx. AUD 620 million (FY2017 forecast)
Construction example
Construction example
Construction example
Construction example
Construction example
Construction example
Image of steel frame
Image of steel frame