Legal & General look to sell CALA

Legal & General is planning to sell its housebuilder brand, CALA Group, potentially worth up to £750million.

The decision marks the first significant strategic decision by new chief executive, Antonio Simoes, the former Santander and HSBC executive who replaced Sir Nigel Wilson at the start of the year.

L&G have lined up Rothschild to handle the auction of the housebuilding company, which Mr Simoes previously described as “a very strong business” when questioned about the future ownership of Cala. However, back in autumn 2023, had seen its half-year profits fall, which it put down to the impact of a “challenging market”. The company had set targets to build 3,000 homes a year.

The housebuilder previously outlined a focus on land acquisition in November 2023 following a strong period of activity, with CEO Kevin Whitaker saying that: “Strength of sales rate has given Cala the opportunity to build value for the future. We have been contracting sites with and without planning permission, for both short-term and future development and we are committed to this strategy.”

Cala Group commits to land acquisition following positive year

In February, L&G dismissed that it was intended to sell the business, which it had taken full control of back in 2018.


ShowHouse March 2024

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