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Cala Group (Holdings) Limited
IndustryHousebuilding
Founded1875
HeadquartersEdinburgh, Scotland, UK Staines-upon-Thames, England, UK
Revenue£1,255 million (2023)
£ 81 million (2023)
ParentLegal & General Capital
SubsidiariesBanner Homes
Websitecala.co.uk

CALA Group (Holdings) Limited[1] is a British housebuilding company with headquarters in Edinburgh, Scotland, and in Staines-upon-Thames, England.[2]

It has grown to become one of the largest house builders. In the year to 31 December 2023, Cala Group sold 2,917 homes, had a turnover of £1.3bn and reported a pre-tax profit of £112m. It employed over 1,300 people across 10 offices.[3]

History

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Cala was originally established as the City of Aberdeen Land Association in 1875.

In early 1997, a long-running legal action pertaining to copyright between Cala and rival construction company Alfred McAlpine concluded in an out-of-court settlement under which Cala received £1.85 million.[4] That same year, the firm invested into multiple new sites across the West Midlands.[5] During February 1998, Cala acquired the Yorkshire-based housebuilder Victor Homes.[6]

During April 1999, rival house builder Miller Homes launched a bid to acquire Cala, seeking to create Britain's largest privately-owned house builder, offering 175p per share; around the same time, a group of senior staff at Cala proposed a management buy-out of 165p per share instead.[7][8] A bidding war broke out over Cala's ownership, during which Miller increased its offer.[9][10]

In November 2000, following rival house builder Stewart Milne's withdrawal from a waterfront housing scheme in Edinburgh, Cala stepped in.[11] One year later, the company was reorganised.[12]

Cala was negatively impacted by the wider economic consequences of the 2007–2008 financial crisis, compelling it to lay off staff and intervening to deal with mortgages for eligible customers amid a slowdown of the housing market.[13] During 2010, the firm undertook a judicial review of the British government's decision to abolish regional housebuilding targets;[14] while initially successful,[15][16] further efforts by Cala to prevent local councils from considering their abolition were ruled against.[17]

Between 1999 and 2013, the Bank of Scotland held a majority stake in the company.[18] During January 2012, Cala's leadership publicly stated that the long-term future of the firm's ownership was open to various options, including its takeover by a private equity company or a floatation on the London Stock Exchange;[19] that same year, the firm claimed to have highest average selling price of any of Britain's listed house builders.[20][21] In March 2013, Legal & General (L&G) and Patron Capital each took a 46.5% stake in Cala.[22][23]

Shortly after the purchase, Cala announced plans to expand the business' land bank and to produce 1,000 homes per year.[24] In late 2013, the firm established a new office in Aberdeen to better capitalise on the lucrative opportunities offered by Scottish oil and gas market.[25] During early 2014, Cala opened two new offices in southern England.[26] In October 2014, the firm acquired rival housebuilder Banner Homes in exchange for £200 million.[27][28] Partially as a result of the acquisition, Cala was reportedly set to achieve a three-fold increase in its turnover by 2016.[29][30]

During March 2018, L&G acquired full control of Cala from Patron Capital via a £315 million transaction.[31][32] In 2022, Cala recorded the sale of 3,000 homes; it also employed 1,300 staff at this time.[33][34]

On March 2024, L&G was reported to be looking to sell Cala; accordingly, Rothschild & Co was appointed to handle the sale. In May 2024, Persimmon and Taylor Wimpey were reported to be considering bids for Cala, valued at around £1bn.[35] In September 2024, Cala was sold to its previous owner Patron Capital and investment firm Sixth Street Partners in exchange for £1.35 billion.[3][36]

References

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  1. ^ "CALA GROUP (HOLDINGS) LIMITED overview - Find and update company information - GOV.UK". Companies House. Retrieved 3 August 2023.
  2. ^ "CALA GROUP (HOLDINGS) LIMITED - Overview (Free company information from Companies House)".
  3. ^ a b Prior, Grant (18 September 2024). "Cala Group sold for £1.35bn". Construction Enquirer. Retrieved 18 September 2024.
  4. ^ Morby, Aaron (30 January 1997). "Alfred McAlpine makes out-of-court settlement after High Court landmark ruling Cala receives 1.8m in housing copyright row". constructionnews.co.uk.
  5. ^ "Midlands Homes lift for CALA". constructionnews.co.uk. 16 October 1997.
  6. ^ "Cala brings Yorkshire builder into its stable". constructionnews.co.uk. 19 February 1998.
  7. ^ Coulter, Steve (29 April 1999). "Contractor aims to take over rival to create largest privately-owned UK house builder Miller bids to grow with £86m Cala buy". constructionnews.co.uk.
  8. ^ "Hostilities break out as management buy-out group prepares to improve on 175p-a-share offer Miller bids #86m for CALA". heraldscotland.com. 23 April 1999.
  9. ^ "Miller fights on in bidding war over Cala". propertyweek.com. 30 April 1999.
  10. ^ "Gloves come off in battle for control of CALA". heraldscotland.com. 27 April 1999.
  11. ^ "Cala homes in as backer quits waterfront". constructionnews.co.uk. 30 November 2000.
  12. ^ "Cala splits division". constructionnews.co.uk. 18 October 2001.
  13. ^ Reisner, Alasdair (11 June 2008). "Cala mortgage pledge". constructionnews.co.uk.
  14. ^ Pitcher, Greg (11 August 2010). "Cala Homes calls for judicial review of decision to scrap housing targets". constructionnews.co.uk.
  15. ^ "Pickles' abolition of housebuilding targets was unlawful". publicfinance.co.uk. 10 November 2010.
  16. ^ Sidders, Jack (10 November 2010). "Cala Homes beats Eric Pickles in High Court". constructionnews.co.uk.
  17. ^ "Judge rejects Cala Homes legal bid". constructionnews.co.uk. 8 February 2011.
  18. ^ King, David (16 March 1999). "Cala to construct future as private company". The Scotsman. Archived from the original on 20 November 2018. Retrieved 2 December 2017.
  19. ^ Cross, Luke (11 January 2012). "Cala's future remains open as house builder reports 12pc volume surge". constructionnews.co.uk.
  20. ^ Smulian, Mark (2 July 2012). "Cala claims house price top spot". constructionnews.co.uk.
  21. ^ Berkin, Chris (11 September 2012). "Cala sticking with residential after record profits". constructionnews.co.uk.
  22. ^ Mackie, Gareth (18 March 2013). "Cala set for new lease of life after takeover deal". The Scotsman. Retrieved 2 December 2017.
  23. ^ "House builder Cala in £200m takeover". BBC News. 18 March 2013.
  24. ^ Berkin, Chris (19 March 2013). "Cala targets 1,000 homes a year after purchase". constructionnews.co.uk.
  25. ^ Fitzpatrick, Tom (22 October 2013). "Scottish oil and gas aids Cala Homes growth". constructionnews.co.uk.
  26. ^ Stothart, Chloe (17 February 2014). "Cala Homes in southern expansion". constructionnews.co.uk.
  27. ^ Jeff, Dominic (21 October 2014). "'It's been a really good year' says Cala boss". The Scotsman. Retrieved 2 December 2017.
  28. ^ McCulloch, Scott (24 March 2014). "CALA Group buys upmarket house builder Banner Homes in £200m deal". insider.co.uk.
  29. ^ Wilson, Robyn (20 October 2014). "Cala Homes' revenue on track to triple by 2016". constructionnews.co.uk.
  30. ^ Schouten, Charlie (4 October 2016). "Cala Group 'on target' to hit £1bn turnover by 2020". constructionnews.co.uk.
  31. ^ "Legal & General Capital acquires full ownership of Cala". scottishhousingnews.com. 13 March 2018.
  32. ^ "Cala builds strong foundations as new chief is unveiled". scotsman.com. Retrieved 3 August 2018.
  33. ^ Kleinman, Mark (18 March 2024). "Legal & General lines up bankers to sell housebuilder Cala". Sky News. Retrieved 26 March 2024.
  34. ^ Morby, Aaron (25 March 2024). "L&G looks to sell Cala Homes in exit from house building". Construction Enquirer. Retrieved 26 March 2024.
  35. ^ "Persimmon tipped for Cala bid". The Construction Index. 28 May 2024. Retrieved 28 May 2024.
  36. ^ Rogers, Dave (18 September 2024). "L&G sells Cala to private equity investors for £1.35bn". housingtoday.co.uk.
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