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.