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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 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. 

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