The UK financial services company’s investment arm, Legal & General Capital, has agreed to pay £315mln to buy from Patron Capital Partners the 52.1% stake in Cala that it did not previously own.
The total valuation of the entire stake is £605mln.
“Legal & General believes that Cala Homes has 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 the UK,” the company said in a statement.
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L&G said Cala has performed strongly under its joint ownership of the business with Patron Capital.
Cala’s revenues have increased to £748mln in 2017 from £241mln in 2013 when L&G and Patron Capital bought the business. Profits at Cala have risen at a compound annual growth rate of 12% over the past three years.
In January, Cala said that it expected to record a sixth year of revenue and profit growth in 2018.
L&G and Patrol Partners bought Cala in 2013 for £210mln, taking a 46.5% stake each with Cala’s management owning the rest.