Legal and General  

L&G buys remaining stake in housebuilder

L&G buys remaining stake in housebuilder

Legal & General Capital has bought the remaining stake in CALA homes that it did not already own.

The insurer, which was a minority shareholder, has bought the remaining 52.1 per cent of the company for £315m plus transaction costs and financial adjustments, and the transaction completes immediately.

L&G said the housebuilding business had performed strongly while being jointly owned by the insurer and by Patron Capital Partners, with revenues growing threefold from £241m in 2013 to £748m in 2017.

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Kerrigan Procter, chief executive of Legal & General Capital, said:  “[CALA] has a strong management team with proven experience of managing a housebuilding business across business cycles, and has delivered great returns for shareholders since its acquisition in 2013, having tripled in revenue during this time."

Alan Brown, chief executive of CALA Homes, added:  “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 housebuilders and this is testament to the strength and ambition of our team, the quality of our homes and our approach to customer service."

Keith Breslauer, managing director of Patron Capital, said that he was confident the business will  “continue to grow and thrive under Legal & General’s ownership”.

“Patron remains committed to the UK residential sector with our extensive investment activities in this area,” he added.