Legal and General Capital buys full ownership of Cala Homes

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  • 13/03/2018
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Legal and General Capital buys full ownership of Cala Homes
Legal and General Group has bought the 52.1% of CALA Homes previously owned by Patron Capital Partners, after the builder’s revenues grew three-fold since 2013.

 

 

During joint-ownership, Cala grew revenue from £241m in 2013 to £748m in 2017, and profits grew at an annual rate of 12% over the last three years.

The group said: “If Cala Homes had been 100% owned by Legal & General during 2017 on a post-transaction basis, the operating profit before tax would have been £91.5m. Legal & General reported operating profit before tax for its 47.88% stake in CALA Homes in 2017 of £42.5m.”

 

Company valuation

The total valuation of 100% of the equity in CALA Homes was £605m.

The acquisition cost of the 52.1% share capital Legal & General did not own was £315m plus additional transaction costs and financial adjustments to reflect Patron’s contribution.

Kerrigan Procter, chief executive officer of Legal & General Capital, said: “Legal & General is delighted to assume full ownership of Cala Homes, a growing business which we know and understand well.”

He continued: “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 Homes, said: “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.”

Patron said it remains committed to the UK residential sector with its “extensive investment activities in this area.”

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