Japanese contractor and materials company Sumitomo Forestry is to purchase a controlling stake in Metricon, Australia’s largest housebuilder, for US$79m.

The acquisition will give Sumitomo a 51% share in the company and the option of buying the remaining shares if it is able to meet business conditions in the future.

As part of the deal, Metricon will become a fully consolidated subsidiary and listed on the Tokyo stock exchange.

Brad Duggan, the housebuilder’s chief executive, said: “Metricon has worked hard over the past 24 months to return the group to its position of strength, and we are ecstatic that this work has resulted in the establishment of such an important partnership with Sumitomo Forestry.

“This partnership enhances Metricon’s readiness to respond to the opportunities in the Australian housing market. The Australian housing industry, more than ever, needs strong participants to solve the issues it currently faces.”

Metricon was founded in 1976 and is active across Australia, with a focus on Victoria, New South Wales and southeast Queensland.

Sumitomo Forestry Group has been active in Australia since 2008.