TOKYO–(BUSINESS WIRE)–Taiyo Pacific Partners announced today that it has accumulated in excess
of 5% in Open House Co., Ltd (3288). Taiyo Pacific Partners is known for
its cooperative investment style working with senior management to
enhance shareholder value.
Brian K. Heywood, Chief Executive Officer and Managing Partner of Taiyo
Pacific Partners, said, “Investing in Japan is like a treasure hunt.
Real value and growth can often be found in places that no one else is
looking. With the well-known demographic challenges of Japan, no one
expects anything interesting to happen in the housing market. However,
there seems to be significant consistent demand for affordable single
family homes in the major cities and Open House is laser focused on
meeting that demand. We believe that President Arai and his team are
well positioned to continue growing market share and increasing
shareholder returns in the years ahead.”
Michael A. King, Chief Investment Officer and Managing Partner of Taiyo
Pacific Partners, said, “Open House’s unique and profitable business
model has, and we believe will continue to, achieve double-digit profit
growth and 30%+ ROE. Management has also recognized the importance of
financial activities and implemented continuous and timely share
buybacks as well as optimized financial leverage to maximize shareholder
return. We believe these factors are not appropriately accounted for in
the current valuation.”
President Masaaki Arai commented, “Taiyo Pacific Partners fully
understands Open House’s strategy and business through our frequent
dialogue. We are pleased they have come to highly value the future
potential of our business model, an integrated Single-Family Home
business portfolio including land purchase, construction, and sales. We
are also pleased that they appreciate our philosophy to provide
affordable houses in the metropolitan area for working couples so that
they can further enjoy life with their children and reduce their
commuting time. We welcome that Taiyo Pacific Partners has decided to
increase their investment in us from a long-term view, and will continue
to work to increase corporate value to meet their expectations.”
Taiyo Pacific Partners, located in Kirkland, Washington, was founded in
2003 by Asia-focused professionals dedicated to friendly shareholder
activism in Japan and other Asian countries. The firm currently manages
over $2.4 billion in Japan-focused funds. All strategies employ a
friendly engagement approach.
Contacts
Taiyo Pacific Partners
Brian K. Heywood, 425-896-5300
[email protected]
