Legal & General Sells U.K. House Builder Cala to Private Equity Firms for $1.8 Billion

A Landmark Deal in the UK Housing Market

London - In a major transaction that will reshape the UK housing market, Legal & General Group Plc (L&G) has agreed to sell its housebuilding business, Cala Homes, to a consortium of private equity firms for approximately £1.3 billion ($1.8 billion). The deal is expected to close in the second half of 2023, subject to regulatory approvals.

Key Details of the Transaction

* The consortium of buyers includes Patron Capital, TDR Capital, and Goldman Sachs Asset Management. * The sale includes all of Cala's operations in the UK, including its land bank and development pipeline. * L&G will retain a minority stake in Cala and provide ongoing support to the business.

Strategic Rationale for L&G

L&G's decision to sell Cala is part of its strategic shift towards asset management and capital-light businesses. The sale will allow L&G to free up capital for investment in its core businesses, such as insurance and retirement products.

Outlook for Cala Under New Ownership

Under the ownership of the private equity consortium, Cala is expected to continue its focus on building high-quality homes in the UK. The consortium has a strong track record in the real estate sector and is expected to provide Cala with the resources and support needed to grow its business.

Impact on the UK Housing Market

The sale of Cala is a significant event in the UK housing market. Cala is one of the largest housebuilders in the country, and its sale will likely lead to increased consolidation in the industry. The deal may also have implications for the availability and affordability of housing in the UK.

Additional Details

* The sale of Cala Homes was first reported by Sky News on January 17, 2023. * L&G and the consortium of buyers have declined to comment on the transaction. * The deal is expected to close in the second half of 2023, subject to regulatory approvals.