Patron, which is focused on investments in distressed property assets, and Legal &General will each own a 46.5 per cent interest with Cala’s management taking a seven per cent stake in the business. The acquisition was funded by £140m of equity and £70m of debt.
The deal follows a period of strong performance for Cala, which saw its private home sales surge 34 per cent over the first eight weeks of the year. At the end of February, the company’s landbank stood at 9,900 owned and contracted plots with a potential gross development value of £3.1bn.
The two firms said the deal will help Cala “build on the positive momentum it has generated in recent years, with a medium term aim of increasing the size of the group substantially.”
Keith Breslauer, Patron managing director, said, “This significant transaction for Patron highlights our confidence in Cala, its growth potential and the group’s competitive position in the UK housebuilding sector, which is one of the key areas of focus for the economy due to its ability to create jobs and fuel economic growth.
“A continued undersupply of new housing in the UK, coupled with the availability of land at a lower point in the cycle and legislation to promote development, creates a favourable backdrop for this deal.”
In September last year Patron closed its Patron Capital IV fund on €880m.
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