Legal & General is lining up investment bank Rothschild to oversee a potential sale of its Edinburgh-based upmarket home builder Cala Group, according to Reuters report.

Industry analysts believe Cala could be worth up to £750 million.

In its last set of accounts for 2022, Cala said it sold more than 3,000 homes and reported revenue of £1.4 billion.

The report said Legal & General has held discussions with Rothschild about potentially running a sales process for Cala, but no final decision on offloading the business has been made.

Sky News first reported on the discussions. Cala did not comment.

Legal & General’s new chief executive Antonio Simoes took over at the FTSE 100 company at the start of this year, and said earlier this month he was “taking a fresh perspective” on the business.

L&G took full control of Cala in 2018.