Cala launches two new divisions in south east

Aaron Morby 11 years ago
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Edinburgh-based house builder Cala is ramping up its business in the south east with the launch of two new divisions.

The expansion forms part of a more ambitious plan to double the size of the house building business by 2017.

The Scottish house builder pitched into expansion mode after Lloyds sold the business a year ago to private equity firm Patron Capital Partners and insurer Legal & General.

A new regional division, headed by Duncan Jackson, previously managing director of Persimmon’s Essex business, will cover the North Home Counties.

This will encompass Essex, Hertfordshire, Bedfordshire, Cambridgeshire and London Boroughs down to Zone 3.

The new Southern Home Counties division will cover North Kent, West Sussex, East Sussex, Hampshire, Surrey and South London Boroughs.

Cala is still searching for a regional managing director for the territory and will appoint a boss later in the year.

The two new regional offices are each expected to deliver an annual development value in 2016 of £100m, rising steeply thereafter.

Alongside this, Cala has also appointed a new regional managing director for the group’s existing South division.

Nick Twine, previously south east managing director at Bovis Homes, has recently joined the group with responsibility for managing Cala’s development activity in Buckinghamshire, South Oxfordshire, Berkshire, West Surrey, parts of Hampshire and West London Boroughs.

Alan Brown, group chief executive, said: “After delivering record profits for Cala Homes during 2013, we are now investing significantly in new staff and top quality sites in new, high-growth markets.

“With a strengthened housing market and improving consumer confidence, our strategy during the first half of 2014 will be focused on increasing market share within the South East of England.

“With the financial firepower that our new, blue-chip investors afford us, we are now able to develop land within our landbank at a faster rate than ever before while identifying and securing the very best sites available in the South East.

He added: “I’m pleased to report that we continue to see positive organic growth within our West Scotland, East Scotland, North Scotland and Midlands businesses which, when combined with our growth forecasts for the South East, put us firmly on track to deliver our target to more than double the size of the business by 2017.”

Cala also forecast the business in the Midlands would almost triple its revenue over the next three years.

The group’s West Scotland business is expected to deliver revenue growth in the region of 70% during the same period while Cala’s North and East Scotland division is aiming to double its turnover by 2017.

Cala is investing heavily in its land bank to fuel its growth ambitions.

Since July last year, the house builders has contracted 1,824 plots with£681m development value, and has received consent on 15 sites, of 1,642 plots with an expected development value of £417m.

Its current land bank consists of 10,770 plots, including 6,200 consented and 2,700 allocated plots, a 16% rise in plots versus the previous year.

This excludes strategic land, which represents around 8,200 units.

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