New home builder Mattamy Homes (Mattamy) has agreed to purchase Monarch Corporation (Monarch), the Canadian division of American homebuilder Taylor Morrison Home Corporation. Monarch is involved in the development of condominiums in Toronto, Ont. Currently, the purchase price for Monarch is set at approximately $330-million.
“Monarch is a leading builder in Ontario, with an exceptional reputation and portfolio of assets,” says Peter Gilgan, Founder & CEO of Mattamy. “The addition of the business to Mattamy Homes aligns well with our growth strategy, and we look forward to working with the talented Monarch team as we enhance our already significant footprint in Ontario and enter into the high-rise market.”
Monarch entered the condominium market in 1993 in response to changing market demographics and increasing demand for high-rise housing. Since that time, the company has sold over 7,000 units in the condominium sector. A member of the Canada Green Building Council (CaGBC), Monarch focuses on energy and water conservation, as well as air quality, when working on developments.
“This is an exciting time for Mattamy as well as Brad Carr, our Canadian President, and me,” says Brian Johnston, Chief Operating Officer at Mattamy. “We both spent our formative years at Monarch and expect the deal to provide valuable synergies to Mattamy. I would highlight that this acquisition, in one stroke, puts us in the high-rise business in a significant way. High-rise represents more than 50% of new home sales in the Greater Toronto Area and so is a major positive to this transaction.”
The purchase is expected to close in the first quarter of 2015.