Housebuilding giant Cala, which was founded in Scotland, has been sold to US investors for more than £1 billion.
Pensions giant Legal & General announced today that it had agreed to sell Cala to the Sixth Street Partners and Patron Capital investment firms, in a deal which puts a £1.4bn valuation on the business.
The sale could allow Legal & General to book a big gain on its investment in Cala, which has enjoyed strong growth in recent years amid buoyant market conditions. However conditions have deteriorated in recent months after increases in mortgage costs.
Cala sees profits plunge as mortgage costs hit demand
Legal & General acquired full control of the business from Patron Capital in 2018. That deal valued Cala at £605m.
Patron Capital’s Keith Breslauer described Cala as one of the UK’s leading housebuilders with a best-in-class landbank.
Scottish investment giant faces huge challenges under new chief executive
Cala began life as the City of Aberdeen Land Association in 1875.
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