Cala is a leading provider of desirable, high quality new homes across the South of England, the Cotswolds and Scotland. The Company is on track to deliver circa 3,000 new homes in the financial year ending 31 December 2024.

The sale has an enterprise value of £1.35 billion and is expected to complete in Q4 of 2024.

Commenting on the acquisition, Kevin Whitaker, CEO of Cala, 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 ten-fold respectively.

“Cala’s biggest strength is the talent and passion of our people, and I would like to thank our dedicated employees for continuing to deliver for the business and our customers. Cala is in a strong position to go forward, with new ownership and a platform to deliver our next stage of growth. We have talented teams in place across the business, and continue to invest in our land pipeline, to grow our delivery of high quality, sustainable new homes throughout the UK.”

Julian Salisbury, co-chief investment officer of Sixth Street, 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.

“We, together with Patron, look forward to continuing to support Cala and its management team, not only with capital but also with the significant resources of our London-based real estate investment team led by Giulio Passanisi.”

Keith Breslauer, managing director and founder of Patron Capital, added: “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.”

António Simões, group chief executive officer of Legal & General, commented: “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[1]. 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.”

Discussing the deal further, Russ Mould, investment director at AJ Bell, said: “Legal & General was among the top fallers on the FTSE 100 after announcing the sale of its housebuilding business, Cala. Investors might be disappointed that it isn’t getting the full £1.16 billion cash up front. Just over half the money will be paid over a five-year period.

“Legal & General’s shares have been weak since its strategy update in June. Therefore, it’s not a surprise to see the company imply it might use some of the sale proceeds to fund share buybacks as it needs to deliver some more positive news to win back the market’s favour.”