Housebuilder facing bid interest
Cala draws attention from Chinese predator
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.