It has grown to become one of the largest housebuilders in the UK.[3] In the year to 31 December 2023, Cala Group sold 2,917 homes, had a turnover of £1.3 billion and reported a pre-tax profit of £112 million. It employed over 1,300 people across 10 offices.[4]
History
Cala was originally established as the City of Aberdeen Land Association in 1875.[5]
In early 1997, a long-running legal action pertaining to copyright between Cala and rival construction company Alfred McAlpine concluded in an out-of-court settlement under which Cala received £1.85 million.[6] That same year, the firm invested into multiple new sites across the West Midlands.[7] During February 1998, Cala acquired the Yorkshire-based housebuilder Victor Homes.[8]
During April 1999, rival house builder Miller Homes launched a bid to acquire Cala, seeking to create Britain's largest privately-owned house builder, offering 175p per share; around the same time, a group of senior staff at Cala proposed a management buy-out of 165p per share instead.[9][10] A bidding war broke out over Cala's ownership, during which Miller increased its offer.[11][12]
In November 2000, following rival house builder Stewart Milne's withdrawal from a waterfront housing scheme in Edinburgh, Cala stepped in.[13] One year later, the company was reorganised.[14]
Cala was negatively impacted by the wider economic consequences of the 2007–2008 financial crisis, compelling it to lay off staff and intervening to deal with mortgages for eligible customers amid a slowdown of the housing market.[15] During 2010, the firm undertook a judicial review of the British government's decision to abolish regional housebuilding targets;[16] while initially successful,[17][18] further efforts by Cala to prevent local councils from considering their abolition were ruled against.[19]
Between 1999 and 2013, the Bank of Scotland held a majority stake in the company.[20] During January 2012, Cala's leadership publicly stated that the long-term future of the firm's ownership was open to various options, including its takeover by a private equity company or a floatation on the London Stock Exchange;[21] that same year, the firm claimed to have highest average selling price of any of Britain's listed house builders.[22][23] In March 2013, Legal & General (L&G) and Patron Capital each took a 46.5% stake in Cala.[24][25]
Shortly after the purchase, Cala announced plans to expand the business' land bank and to produce 1,000 homes per year.[26] In late 2013, the firm established a new office in Aberdeen to better capitalise on the lucrative opportunities offered by Scottish oil and gas market.[27] During early 2014, Cala opened two new offices in southern England.[28] In October 2014, the firm acquired rival housebuilder Banner Homes in exchange for £200 million.[29][30] Partially as a result of the acquisition, Cala was reportedly set to achieve a three-fold increase in its turnover by 2016.[31][32]
During March 2018, L&G acquired full control of Cala from Patron Capital via a £315 million transaction.[33][34] In 2022, Cala recorded the sale of 3,000 homes; it also employed 1,300 staff at this time.[35][36]
In May 2023, Cala acquired 100% of Taylor Lane Timber Frame, one of the UK’s leading timber frame construction specialists.[37]
In March 2024, L&G was reported to be looking to sell Cala; accordingly, Rothschild & Co was appointed to handle the sale. In May 2024, Persimmon and Taylor Wimpey were reported to be considering bids for Cala, valued at around £1 billion.[38] In September 2024, Cala was sold to investment firms Patron Capital and Sixth Street Partners in exchange for £1.35 billion.[4][39]
