Legal & General Group announced that its Legal & General Capital division acquired the 52.1% of Edinburgh-based Cala Homes which it did not previously own.

Legal & General said the total valuation of 100% of the equity in Cala Homes is £605 million.

The acquisition cost of the 52.1% share capital Legal & General did not own is £315 million plus additional transaction costs and financial adjustments to reflect the contribution of management and Patron during the period of joint ownership.

“The business has performed strongly under our joint ownership with Patron Capital Partners, with revenues growing threefold from £241 million in 2013 to £748 million in 2017 … ” said Legal & General .

“Legal & General believes that Cala Homes has attractive growth prospects under its continued ownership based on Legal & General Capital’s long term approach to investing and the attractive market for housebuilding in the UK.

“If Cala Homes had been 100% owned by Legal & General during 2017 on a post transaction basis, the operating profit before tax would have been £91.5 million.

“Legal & General reported operating profit before tax for its 47.88% stake in CALA Homes in 2017 of £42.5 million.”

Legal & General Capital CEO Kerrigan Procter said: “Legal & General is delighted to assume full ownership of Cala Homes, a growing business which we know and understand well.

“It has a strong management team with proven experience of managing a house building business across business cycles, and has delivered great returns for shareholders since its acquisition in 2013, having tripled in revenue during this time.

“I am excited to be working with the team as Cala Homes continues to develop and grow under our continued ownership.

“Legal & General has valued the contributions of Patron over the past years and is pleased to have successfully grown the business together.”

Cala Homes CEO Alan Brown said: “Today’s investment by Legal & General marks the start of another exciting new chapter for Cala Homes and is a fantastic endorsement of our growth potential from one of the UK’s most highly-respected, blue-chip investors who shares our long-term vision.

“Over the past five years we have become one of the UK’s fastest growing house builders and this is testament to the strength and ambition of our team, the quality of our homes and our approach to customer service.

“We have also benefitted from the on going backing of our shareholders and I would like to take this opportunity to thank Patron for their support alongside Legal & General.”