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Housebuilder facing bid interest

Cala draws attention from Chinese predator

Brunswick Road Cala

Cala Homes development in Leith

Housebuilder Cala is being targeted by a Chinese company interested in launching a £600 million takeover.

According to City sources talks have taken place recently. It is the latest in a string of reports of either a trade sale or IPO of the Scottish company.

Cala is owned by private equity firm Patron Capital Partners and insurer Legal & General who bought the company three years ago for £210m.

It has been in rude health, benefiting from a robust level of activity at the top end of the market.

Earlier this month it reported an 18% rise in annual pre-tax profits to a record £60.1 million on a 15% increase in revenue to £587.1m.

It is focused at the top of the market in affluent areas of the Midlands, Scotland, and around the M25.

The firm’s average selling price in England is £639,000, against the Scottish  average of £476,000.

The company said fewer homes were selling for more than £1.25m. These make up 5% of sales, and the company said it would build fewer in this market.

Commenting on the bid rumour a spokesman for Cala said: “Thanks to the quality of our brand and strong financial and trading performance, from time to time we may find ourselves the subject of speculation but from our perspective it is very much business as usual.”
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