Legal & General Sells CALA Group to Homes England for £1.35bn

L&G Abandons Housebuilding as Part of Strategy Overhaul

Key Points:

• Legal & General (L&G) has completed the sale of CALA Group to Homes England, a government-owned housing delivery agency, for £1.35 billion.
• The sale marks L&G's exit from the UK housebuilding sector as part of a wider strategic shift towards investing in clean energy and infrastructure.
• CALA is a major housebuilder in the UK, with a focus on the private and affordable housing markets.

L&G's decision to sell CALA is part of a broader strategy to reshape its portfolio and focus on businesses that support the UK's transition to net zero. The company has identified clean energy, affordable housing, and infrastructure as key growth areas.

The sale of CALA to Homes England is expected to complete in the second half of 2023, subject to regulatory approvals. Homes England is a non-departmental public body that supports the delivery of new homes in England.

Strategic Shift for L&G

L&G's decision to exit the housebuilding sector reflects a shift in the company's overall strategy. In recent years, L&G has expanded its investments in renewable energy, infrastructure, and affordable housing.

The company believes that these sectors offer better growth opportunities and are more aligned with its long-term sustainability goals. L&G has committed to investing £25 billion in green energy projects by 2030.

CALA's Future under Homes England

CALA will continue to operate as an independent housebuilder under the ownership of Homes England. The company's management team and employees will remain in place.

Homes England has expressed its commitment to supporting CALA's growth and its focus on delivering high-quality homes. The agency has a track record of working with private sector partners to increase the supply of affordable housing.

Conclusion

The sale of CALA Group to Homes England marks a significant shift in L&G's strategy. The company is exiting the housebuilding sector to focus on clean energy, affordable housing, and infrastructure.

CALA will continue to operate as an independent housebuilder under the ownership of Homes England. The agency's commitment to supporting CALA's growth and focus on delivering high-quality homes is expected to benefit the company and its customers.