"Today’s investment by Legal & General marks the start of another exciting new chapter for CALA and is a fantastic endorsement of our growth potential"
Legal & General has bought out its fellow major shareholder, Patron Capital and CALA’s management team for £315m to take full control of CALA Homes securing the 52.1% of the firm which it did not previously own.
L&G has owned the business with Patron over the past five years as the housebuilder has grown, achieving record financial results, doubling new home volumes and tripling revenues. CALA has increased volumes by 67% in the past ten years and claims the title of the UK’s fastest growing housebuilder.
The firm says it is on course to deliver 2,500 units per annum and around £1bn of revenue in 2020 and says it has the capability to build in excess of 3,000 units per annum from its existing regional network in subsequent years.
Alan Brown, CALA Group ceo, said: “Today’s investment by Legal & General marks the start of another exciting new chapter for CALA and is a fantastic endorsement of our growth potential from one of the most highly-respected, blue chip investors in the UK, 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. We have also benefitted from the ongoing backing of our shareholders over this period and I would like to take this opportunity to thank Patron for their support alongside Legal & General.
We look forward to working together with Legal & General to build on the strong momentum we have generated in recent years while further strengthening our position as the UK’s most upmarket major homebuilder.”
Kerrigan Procter, ceo of Legal & General Capital, said: “Legal & General is delighted to assume full ownership of CALA, a growing business which we know and understand well. It 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. I am excited to be working with the team as CALA continues to develop and grow under our continued ownership.”