L&G takes control of Cala Homes for £315m

Aaron Morby 6 years ago
Share

L&G has taken full control of fast-growing upmarket builder Cala Homes paving the way for it to become a major UK housing delivery business.

The insurance and investment group has paid £315m to acquire the 52% of Cala it does not already own.

This involves buying out its fellow major shareholder, the property investor Patron Capital, and Cala’s management team in a deal that values the firm at £605m.

The business has performed strongly in recent years with revenues tripling from £241m in 2013 to £748m in 2017, and profits growing by around 12% annually over the last three years.

Legal & General said that CALA Homes had attractive growth prospects under its continued ownership based on Legal & General Capital’s long term approach to investing and the attractive market for housebuilding.

In recently reported half-year trading, Cala lifted completions by a third to over 900 homes.

Management believe it has the capability to build in excess of 3,000 units per annum from its existing regional network.

Alan Brown, Chief Executive of CALA Homes, said:  “Today’s investment by Legal & General marks the start of another exciting new chapter for CALA Homes and is a fantastic endorsement of our growth potential from one of the UK’s most highly-respected, blue-chip investors who shares our long-term vision.

“Over the past five years we have become one of the UK’s fastest growing house builders and this is testament to the strength and ambition of our team, the quality of our homes and our approach to customer service.”

Legal & General is seeking to transform the house building industry and last year opened a modular housing factory in Leeds  with the aim of building more than 70,000 new homes over 10 years.

The deal gives it an interest in the full range of housing models.

It is a major investor in build to rent with many high-rise schemes presently under construction.

Legal & General Homes, the housebuilding arm of Legal & General Capital, has bought two major sites in Berkshire where it is acting as a traditional developer.

Recently it bought a 272-acre site in Arborfield, Wokingham with planning consent for the homes, a school, shops and employment generating uses and started work last year on Buckler’s Park, a 250 acre, 1000-home development in Crowthorne in Berkshire.

Latest news

Receivers in at £125m Manchester tower developer

Domis Construction walked away from scheme following doubts over funding
9 hours ago

McAlpine pulls out of £55m Carlisle Citadels project

University of Cumbria starts hunt for replacement contractor
4 days ago

Strabag UK suffers further big trading loss

Austrian contractor is gearing up for major presence in the UK market
3 days ago

Durham Uni picks UPP for £130m student scheme

Firm will deliver 1,000 self-catered bed spaces
3 days ago

Architects now upbeat after 10-months of work gloom

Larger practices see rising workloads in next three months
3 days ago

Motorist dies after collision with road paver

Police Scotland investigating fatal crash
4 days ago

McLaren Living appoints HG Construction for £69m scheme

Build to Rent scheme will transform former vacant car park site in Leeds city centre
4 days ago

Squibb liquidator probes £2m of “missing” plant

Machinery, cars and scrap metal have disappeared at demolition specialist
4 days ago

Galliford Try to re-enter affordable homes market

Contractor sets out new five-year plan to build margin to 4%
4 days ago

Former Sellar chief to lead civils contractor Kilnbridge

Owen Dannatt joins as new CEO as founder Dermot McDermott becomes Chairman
4 days ago

Hunt starts for nuclear fusion plant construction partner

Fusion energy plant to be built at West Burton coal power station site.
4 days ago

National Grid raises £7bn for big infrastructure upgrade

Rights issue to fund a major round of capital investment in energy infrastructure
4 days ago

Grenfell police probe to last at least until end of 2025

19 companies and 58 individuals could eventually face charges
4 days ago

Mace confirmed on £100m London office retrofit

Work underway on Helical's 100 New Bridge Street job near Ludgate Circus
5 days ago

Wylfa chosen for next big nuclear power station build

Government names Anglesey site for a large-scale gigawatt nuclear power plant.
5 days ago

Bowmer & Kirkland trading profit halves

Contractor buys HVAC specialist Adcock despite challenging market
5 days ago

Piling specialist Van Elle plans further job cuts

Piling specialist plans further cost savings in face of lower demand
5 days ago

Civils contractor A Catlow files administration notice

High voltage cable specialist lodges court notice
5 days ago

Green light for ARC Oxford lab campus

Work to start later this year on £40m Ascent building job
5 days ago

Stonehenge tunnel hit by another legal delay

Court upholds latest appeal against £1.7bn scheme by campaigners
6 days ago

Plans go in for huge Olympic Park construction hub

Bow Goods Yard could deliver 3.5m tonnes of materials a year to sites across London
6 days ago

40% affordable homes target for Labour’s new towns

Labour pledges to select new town sites by end of first year
6 days ago

Plan for £100m Liverpool Baltic station

Construction work could begin next year
6 days ago

Surgo Construction went down owing £4.5m

Biggest creditor is Bellway Homes after dispute on housing job
6 days ago

Vistry seals £157m West London housing deal

Around 575 homes to be built at Merrick Place scheme in Ealing
6 days ago

Streamlined Watkin Jones returns to profit in first half

Multi-room specialist sees secured work pipeline hit £1.4bn
6 days ago

Bellway hires ex-brickie as group construction chief

James Griffin to oversee move to the Future Homes Standard and timber frame.
6 days ago

Persimmon under fire for delays to £10m relief road

West Suffolk Council serves Breach of Condition Notices after timetable slips again
6 days ago

BAM wins £33m Kent secondary school job

Replacement Swanley academy to be built at live school site
6 days ago

Aluminium cladding specialist collapses

Melton Mowbray-based firm worked for several main contractors
7 days ago

Contractor services