L&G buys stake in housebuilder Cala for £210m

City A.M. Reporter

INSURER Legal & General has bought a 46.5 per cent in Cala Group in a deal that values the housebuilder at £210m.

L&G bought the stake – from Lloyds Banking Group ­– with private equity group Patron Capital Partners, which will buy a 46.5 per cent stake, while Cala’s management will take a seven per cent share.

The acquisition will be financed by £140m of equity and £70m of debt.

Cala, which builds homes in Britain's Cotswolds region and around Glasgow and Edinburgh in Scotland, posted profits before tax of £11.4m and had gross assets of £354m for the year to the end of June.