Daiwa House Industry Co., Ltd.

Apollo-managed funds have agreed to sell an approximately 30% minority stake in UK housebuilder Miller Homes to Daiwa House, with Apollo Funds remaining the controlling shareholder. Miller Homes, founded in 1934, is the UK's largest private housebuilder, completing approximately 5,000 homes a year across England, Scotland and Wales, and targets delivering 7,000 new homes per year. Daiwa House, a Japanese construction and real estate group operating in 28 countries with roughly 55,000 employees, said the investment will support Miller Homes' continued profitable growth and its multi-tenure model. The transaction is subject to closing conditions including regulatory approvals and is expected to close later this year. Rothschild & Co advised Apollo Funds and Miller Homes, while A&O Shearman and Paul, Weiss, Rifkind, Wharton & Garrison LLP provided legal counsel to Apollo Funds.

Major real estate companies, including comprehensive developers, are stepping up data center development. According to the Ministry of Internal Affairs and Communications, the domestic related market is expected to exceed 5 trillion yen in 2028, and further growth is anticipated on the back of the artificial intelligence boom. Daiwa House Industry plans to build a total of 14 data centers in Inzai City, Chiba Prefecture, breaking ground on the fifth in late September. It has also developed a modular small-scale data center in which some components are manufactured at a factory and assembled on site, and the first such unit was completed in April in Okuma Town, Fukushima Prefecture. Mitsui Fudosan plans cumulative investment of more than 600 billion yen in data center-related projects by fiscal 2035, with development underway in four areas: Sagamihara City, Hino City in Tokyo, the Hokusetsu region of Osaka Prefecture, and the Tama region of Tokyo. In the Hino City project, the building's height was gradually lowered from an initial 80 meters to 63.5 meters in consideration of sunlight. New entrants are also appearing one after another. Mitsubishi Estate set up a data center business office in April and has already invested in multiple projects, and a data center in Ishikari City, Hokkaido, in which Tokyu Land Corporation participated in development for the first time, began operating in August using 100 percent renewable energy.

Daiwa House Industry reported higher first-quarter net income and issued its fiscal 2027 outlook. Net income attributable to owners of the parent rose to 83.19 billion yen from 76.24 billion yen a year earlier, with basic earnings per share of 134.33 yen versus 123.25 yen. Operating income climbed to 130.64 billion yen from 118.12 billion yen, while net sales increased to 1.41 trillion yen from 1.29 trillion yen. For fiscal 2027, the company expects net sales of 5.90 trillion yen, up 5.8% year over year, operating income of 460 billion yen, down 25.2%, and net income of 266 billion yen, down 24.1%, with basic earnings per share of 214.74 yen. Daiwa House shares closed 1.66% higher at JPY 4,588 on the Tokyo Stock Exchange.

Stanley Martin Homes has entered into an agreement to acquire Holiday Builders, expanding its Florida footprint beyond Orlando and Tampa. Holiday Builders closed approximately 1,050 homes in 2025 across seven Florida regions, and the deal will add about 10,600 controlled lots and more than 40 existing communities to Stanley Martin Homes' portfolio. The transaction is expected to close in late July 2026, after which Holiday Builders will become a wholly owned subsidiary. Stanley Martin Homes, headquartered in Reston, Virginia, is a subsidiary of Japan's Daiwa House Group and operates in seven states.