Legal & General has paid £315m to Patron Capital Partners for its share of luxury housebuilder Cala Homes
The firm’s capital division, which previously acquired a 47.9% stake in the business in 2013 for £75m, now owns 100% of Cala Homes, which is valued at £605m.
L&G Capital said it believed Cala Homes had “attractive growth prospects” given the housebuilding market in the UK and that the company was performing strongly with revenue increasing threefold to £748m last year, up from £241m in 2013. Profit grew at a CAGR of 12% over the past three years.
Kerrigan Procter, chief executive of Legal & General Capital, said: “Cala Homes 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: “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.”
In its last full financial year to 30 June 2017 Cala Homes completed sales on 1,677 homes, nearly double the number of homes it sold in 2013 and reported an operating profit of £92.8m.
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