The sale has an enterprise value of £1.35bn and is expected to complete in the fourth quarter of 2024.
Cala was founded as City of Aberdeen Land Association in 1875. It has been wholly owned by Legal & General since 2018 but Patron Capital had previously been an investor alongside L&G for the previous five years.
The company is on track to deliver approximately 3,000 new homes this year across Scotland, the south of England and the Cotswolds.
Cala chief executive Kevin Whitaker said: “Today’s announcement is excellent news for Cala. This investment by Sixth Street and Patron demonstrates their confidence in Cala’s business plan and further potential. We look forward to developing a strong partnership with Sixth Street and reigniting the excellent relationship we shared with Patron between 2013 and 2018.
“I would like to thank Legal & General for their support since they first invested in Cala. With their backing, Cala has successfully tripled the number of homes we build each year, whilst revenue and profits have grown five- and tenfold respectively.”
Keith Breslauer, managing director and founder of Patron Capital, said: “We are pleased to be able to back the Cala business once again. Cala is one of the UK’s leading housebuilders with a best-in-class landbank and a focus on building high-quality homes, being consistently ranked five-star for customer service. Furthermore, Cala is also a people business with a strong corporate culture and a business we know well, and we look forward to working closely with Cala’s impressive management team and our partner, Sixth Street, to further build the business and help tackle the undersupply of homes in the UK.”
Sixth Street co-chief investment officer Julian Salisbury said: “Cala has a bright future and we are proud to be entering this new chapter as stewards of a company with such a deep history and long track record of sustainable growth.”
Legal & General chief executive António Simões said: “This transaction demonstrates continued momentum in executing our strategy, simplifying our portfolio to enable a sharper focus on our core, synergistic businesses. Cala has been an important part of L&G for over a decade, with profits increasing ten-fold since our initial investment in 2013 . The sale announced today will provide capital to deliver our strategic goals of sustainable growth alongside enhanced returns for shareholders. I’d like to thank the whole Cala team for their contribution to the group and wish them every success in the future.”
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