The remaining stake in Cala has been acquired on behalf of Legal & General Capital, the principal investment arm of Legal & General. The additional investment illustrates Legal & General’s confidence in Cala’s growth potential and provides a strong platform for continued growth, while ensuring both consistency and stability in Cala’s operations.
Over the past five years, under the ownership of Legal & General and Patron Capital Partners (“Patron”), Cala has achieved record financial results every year, doubling new home volumes and tripling revenues over the period. The strength of this performance has helped Cala become the fastest growing homebuilder in the UK over the past decade, increasing volumes by 67% in that period compared to an average of only 15% for its peers.
Cala remains on course to deliver 2,500 units per annum and c.£1bn of revenue in 2020 and has the capability to build in excess of 3,000 units per annum from its existing regional network in subsequent years, underpinned by a strong land pipeline, established market position and premium product offering.
Kerrigan Procter, Chief Executive Officer 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.
“Legal & General has valued the contributions of Patron over the past years and is pleased to have successfully grown the business together.”
Alan Brown, Chief Executive of Cala Group, 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.”
Keith Breslauer, Managing Director of Patron Capital, said:
“With the combined resources of Patron and Legal & General, we have worked successfully with Cala’s management team to support the growth of the business and consolidate Cala’s position in the market. Over the last five years, Cala has expanded significantly, growing twofold the annual volume of homes sold and fourfold the operating profits, delivering on the business plan set out at the time of Patron and Legal & General’s acquisition.
“Patron wishes to thank the Cala management for delivering on the plan and Legal & General for its support of the investment; we are confident that 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.”
