Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors

Legal & General takes over full ownership of Cala Homes for £315mln

L&G's investment arm has agreed to pay £315mln to buy the 52.1% stake in Cala Homes that it did not previously own
L&G
L&G said it believes Cala Homes has attractive growth prospects

Legal & General Group PLC (LON:LGEN) has confirmed it has taken over full ownership of UK housebuilder Cala Homes.

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.

READ: Legal & General sees 2017 profit jump 32% jump boosted by reserve releases for changing longevity expectations

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. 

View full LGEN profile View Profile

Legal & General Timeline

Related Articles

Hapi app
October 09 2017
Employee engagement and benefits schemes are the ‘secret sauce’ that makes a business different

© Proactive Investors 2018

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use