Commercial Property News

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Thursday, December 20, 2023

CALA expands in England with 120m management buy-out

Scottish-based developer CALA Group plans to expand its English businesses and double the number of homes it builds after completing a secondary management buyout valuing the business at 12m.

This compares with the equity invested in 1999 of 8m, when the business first went private. 37million is being re-invested in the business by senior members of the management team, 110 staff and Noble Grossart Investments. Bank of Scotland Corporate continues to support CALA, increasing its existing stake in the company from 30% to 40%.

CALA Group currently builds and sells around 1,500 homes per annum and has a landbank with a turnover valued at 6.6b. The new funding will enable the Group within the next four years to deliver over 2,500 homes on an annual basis. The CALA Group is comprised of CALA Properties, a commercial property business, CALA Finance, a residential development funding division, and CALA Homes, a residential and mixed use development business. CALA Homes is comprised of regional companies operating across the South East, Midlands, Yorkshire and Scotland.

The new funding and structure will enable CALA to strengthen and expand its English operations, building on its power base in Scotland where the company is one of the top developers. This year the company started work on a record number of developments across the UK, 30 new schemes, providing 529m worth of development on more than 2,000 plots. The Group have received planning consent for six new developments which will be launched in 2008, providing a turnover of 289million and including a scheme in Lenzie, Glasgow, with consent for 170 homes.