Real Estate
L&G to Sell UK Builder to Sixth Street in £1.35 Billion Deal
- Insurer’s shares dip as only part of price to be paid upfront
- Deal comes amid Labour’s pledge to fix UK’s housing shortage
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British financial-services firm Legal & General Group Plc agreed to sell homebuilder Cala Group to alternative-asset managers Sixth Street Partners and Patron Capital.
The deal will give Cala an enterprise value of £1.35 billion ($1.8 billion) and result in cash proceeds of £1.16 billion, L&G said in a statement on Wednesday. The London-based insurer will use the sale’s proceeds primarily for its own growth and will also consider using them to buy back shares.