Orix buys out American senior housing lender
Japanese company's home financing acquisitions reflect confidence in US market
TOKYO -- Japanese financial services group Orix acquired U.S. mortgage banker Lancaster Pollard, a leading lender for the domestic senior living sector, it was announced Wednesday.
The banker becomes a fully owned subsidiary in the deal, undertaken by American arm Orix USA and seen valued at tens of billions of yen (10 billion yen equals $90.4 million), though the sum was not disclosed.
Lancaster Pollard services loans backed by the Federal Housing Administration as well as mortgages in the Fannie Mae program. The Ohio-based company employs about 140 people and operates nine locations in the U.S.
Assisted-living facilities normally provide food, housekeeping, nursing and other services for residents. The American market for FHA senior housing stands at roughly $3 billion.
Orix expects mid- to long-term growth in the U.S. housing market. In 2010, the conglomerate bought out Red Capital Group, which provides financing for affordable housing.