Legal & General Group (L&G), whose alternative asset platform Legal & General Capital (LGC) owns CALA Homes, is said to be on the brink of deciding who gets to be the next owner of the major UK housebuilder.
LGC initially owned 47.9% of CALA Homes before it purchased the other 52.1% shareholding in a £315 million transaction that was completed in 2018. CALA Homes was LGC’s first direct investment, marking L&G’s entry into the British housing market at the time.
Read more: Legal & General now owns 100% of CALA Homes
The group was “delighted to assume full ownership” then. Now, according to Sky News, an L&G announcement is expected to go out this week, revealing who gets to buy the housebuilding unit. It was reported that US investor Sixth Street, which has partnered with ex-CALA Homes major shareholder Patron Capital, currently leads the race.
However, another bidder – fellow housebuilder Persimmon – is said to be not out of contention yet.
L&G’s decision is likely to be announced this week, Sky News reported.
In the first half of 2024, the financial services group posted a lower profit after tax compared to the corresponding result in 2023. In terms of operating profit, L&G’s three divisions contributed the following: £560 million from institutional retirement; £214 million from asset management; and £268 million from retail.
“At our Capital Markets event in June, we set out our strategy to deliver L&G’s next phase of sustainable growth and enhanced returns, through focused capital allocation and rigour in execution,” chief executive António Simões said last month.
“We are pleased to announce a 5% increase in interim dividends per share, and progress in undertaking a £200 million share buyback, consistent with our new capital return framework.”
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