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 £1bn. [38] In September 2024, Cala was sold to investment firms Patron Capital and Sixth Street Partners in exchange for £1.35 billion. [4] [39]
