Here’s one of the biggest news to grip the Oakville real estate sector just a few weeks ago: Mattamy Homes indeed announced a deal which will make them the new owner of Monarch for $330 – a true joining of the titans as far as the home building industry is concerned.
The Big Canadian Real Estate Buzz
Mattamy Homes Ltd, known as Canada’s largest home builder has taken new leaps to dominate the fast-growing home construction market by buying it’s former rival Monarch Corporation. The reason why this news sent a splashing wave of excitement to everyone invested in real estate is because Monarch Corp. is the Canadian division of the U.S. home building company Taylor Morrison Home Corporation and is known to be one of the oldest real estate companies in Canada. With the Monarch purchase of Mattamy Homes Ltd., the Mattamy home building company will be bigger than ever, as if having operations in several U.S. states and premier locations in Canada like Alberta and Ontario is not enough, and we mean that in a good way.
Mattany founder and CEO Peter Gilgan says that the Mattany purchase of Monarch is in line with their company’s growth strategy, as Monarch is the leading builder in Ontario with an exceptional portfolio of assets and great reputation. He also says that they are looking forward to collaborating with the talented members of the Monarch team as they surge on forward to enter into Ontario’s high-rise market and further imprint Mattany’s already noticeable footprint into it’s real estate scene.
The $330 price is just an estimate though, as the net cash price is still to be determined by the end of 2014 when the deal was announced 2 weeks before that. There will be certain adjustments depending on what the balance sheet says on Dec. 31, 2014 and the deal is not yet final as of today. The Mattany Monarch purchase is set to close within the 1st quarter of 2015 and is subject to closing conditions and pending approval by the Canadian Competitions Bureau.
The Joining of the Titans
It is still yet to be determined how the two companies will be integrated but judging from the founder’s statement of working with the Monarch team, it looks like the core team will still function and continue to be a part of the new Monarch under Mattany Homes.
Mattany Homes’ chief operating officer Brian Johnston says that this is an exciting time for Mattany and it’s Canadian president Brad Carr, especially that they both previously worked at Monarch prior to joining Mattany.
The High-Rise Aspiration
The Monarch Mattany acquisition places Mattany Homes
right in the centre of the high-rise action as more than 50% of new homes being built and sold in the GTA recently are high-rises.
This purchase is also not the only major acquisition for Mattany in the last few months. Less than a year ago, they also purchased the 9,600 acres Thomas Ranch located in Florida for $86 million and that transaction was dubbed as one of the largest U.S. residential land transactions in the past decade.