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 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

September 01 2018
The group manages £7.8bn of funds: £2.8bn in the UK; £2.9bn in Sweden; and £2.1bn in the Netherlands.
Post box
July 20 2018
Overall, trading is in line with management's expectations and ahead of last year

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors 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