Sumitomo Forestry to buy U.S. apartment builder JPI for $215m

Japanese developer looks to capture U.S. demand for rental units

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JPI builds apartments in the U.S. states of California and Texas. (Image courtesy of JPI)

KAZUKI YAMAGUCHI, Nikkei staff writer

September 30, 2023 02:09 JST

TOKYO -- Japanese housing developer Sumitomo Forestry said Friday that it will acquire U.S. apartment builder group JPI for up to $215 million and turn the company into a subsidiary.

Sumitomo Forestry America, the U.S. arm, will buy 90% of JPI's shares in November, with the purchase price to be determined through an earn-out structure. JPI earned $13 million in pretax profit on $423 million in revenue last year.