Cala taken over for £210m

The transaction comprises £140m of equity, and £70m of debt, valuing Cala at £210m.

Patron and Legal & General each take a 46.5% share, leaving 7% within the hands of senior management.

The new owners have promised funds for significant land purchasing.

Lloyds Banking Group will continue its support of the business with a brand new £100m five year banking facility.

Cala returned to profitability in 2011 for the primary time since 2007, 12 months earlier than management’s plans, owing to its premium market positioning and presence in additional affluent areas of the united kingdom similar to the house Counties, Cotswolds and around Glasgow, Edinburgh and Aberdeen. For the year to 30 June 2012, Cala announced a six-fold increase in pre-tax profits to £11.4m and a 35% rise in completions to 875 homes.

At the half-year ended 31 December 2012, home completions were up 13% at the equivalent period last year, while pre-tax profits were £9.6m and the home sales gross margin was 19.7%, up 5.9% at the previous year.

Cala reports that trading performance through the first eight weeks of 2013 have been “exceptionally strong” with private home sales up 34% to 154 (2011: 115) at a normal selling price of roughly £330,000, in step with an analogous period last year. Average sales per site a week are up 31% to 0.72 for the eight-week period (2011: 0.55).

At 28 February 2013, Cala’s land bank stood at 9,900 owned and contracted plots with a possible gross development value of £3.1bn, corresponding to approximately 10 years’ output on current projections. Additionally, the gang controls an extended term strategic land bank of five,400 plots.

Chief executive Alan Brown said: “Having invested heavily in growing our land bank since 2010, we’re now alright positioned to grow the business significantly over the subsequent five years. From our perspective, the timing of this transaction is optimal and i’m tremendously all for what this deal means for our business as we glance forward to a protracted and fruitful relationship with Patron and Legal & General, either one of whom share our values and are captivated with this new partnership.”

Patron managing director Keith Breslauer added: “This important transaction for Patron highlights our confidence in Cala, its growth potential and the group’s competitive position within the UK housebuilding sector, that is some of the key areas of focus for the economy because of its ability to create jobs and fuel economic growth.

“A continued undersupply of latest housing within the UK, coupled with the provision of land at a lower point within the cycle and legislation to advertise development, creates a favourable backdrop for this deal. We have now a robust track record of investing in sites around the UK through healthcare, hotel and leisure businesses including Powerleague and comfort Family Hotels, and are confident that our financial backing and expertise will enable us to work with the present strong management team to capitalise upon Cala’s strong brand.”

Cala was founded in 1875 because the City of Aberdeen Land Association and started building houses in 1974.