Legal & General Set to Sell UK Housebuilder CALA Group in $1.8 Billion Deal

Key Points:

• Legal & General is set to sell its UK housebuilding arm, CALA Group, in a deal worth £1.3 billion ($1.8 billion).
• The buyer is a consortium led by funds managed by TDR Capital LLP, a private equity firm.
• The sale is expected to be completed in the fourth quarter of 2023.

Legal & General to Divest Housebuilding Division

Insurance giant Legal & General is preparing to sell its UK housebuilding business, CALA Group, as the company looks to focus on its core insurance and asset management operations. Legal & General acquired CALA in 2018 for £277 million ($380 million) and has since invested heavily in the housebuilder, helping it to grow its operations and become one of the UK's leading residential developers.

The sale is part of Legal & General's strategy to simplify its business and focus on its core strengths. The company has been divesting non-core assets in recent years, including its private equity arm and its UK general insurance business. The sale of CALA will allow Legal & General to free up capital to invest in its core businesses and pursue other growth opportunities.

CALA Group: A Leading UK Housebuilder

CALA Group is one of the UK's leading housebuilders, with a strong track record of delivering high-quality homes across the country. The company has a land bank of over 20,000 plots and a portfolio of over 4,000 homes under construction. CALA is known for its focus on sustainability and innovation, and it has won numerous awards for its commitment to building environmentally friendly homes.

The sale of CALA Group is a significant transaction in the UK housebuilding sector. The company is one of the largest housebuilders in the UK, and its sale will likely attract interest from a wide range of potential buyers. The deal is also a sign of the growing interest in the UK housing market from private equity firms.

TDR Capital to Acquire CALA Group

The buyer of CALA Group is a consortium led by funds managed by TDR Capital LLP, a private equity firm. TDR Capital has a strong track record of investing in the UK real estate market, and it is expected to provide CALA Group with the resources and expertise it needs to continue to grow its business.

The sale of CALA Group is expected to be completed in the fourth quarter of 2023, subject to regulatory approvals. The deal is a major milestone for Legal & General and CALA Group, and it will reshape the UK housebuilding landscape.

Legal & General to Focus on Core Businesses

The sale of CALA Group will allow Legal & General to focus on its core businesses of insurance and asset management. The company is a leading provider of life insurance, pensions, and investments, and it has a significant presence in the global asset management market. Legal & General is committed to growing its core businesses and providing value to its customers.

The sale of CALA Group is a significant transaction for Legal & General, and it marks a new chapter in the company's history. The company is now well-positioned to pursue its core businesses and continue to grow its operations.