Patron et al. in Cala Group bolt-on

Under the terms of the agreement, Patron and Legal & General will each take a 46.5% equity stake in Cala alongside the company's existing senior management team, which will take a 7% share.

The transaction comprises £140m of equity and £70m of debt, valuing Cala at £210m.

Patron will lead the investment and both Legal & General and Patron will have a representative on Cala's board. Lloyds Banking Group will continue its support of the business with a new £100m five-year banking facility.

The investment was designed to provide Cala with a platform for greater balance-sheet capacity and the funds to add to its existing land bank.

Company
Founded in 1875 and based in Edinburgh, Cala develops residential and commercial properties in the UK. On top of homes, the company also develops, manages, and invests in office, retail, leisure, industrial and mixed-use properties.

As of 28 February 2013, Cala's land bank stood at 9,900 owned and contracted plots with a potential gross development value of £3.1bn, equivalent to approximately 10 years' output on current projections.

People
Keith Breslauer is managing director at Patron. Wadham Downing is the group M&A and strategy director of Legal & General. Mark Prentice is area director of Scotland for Lloyds Commercial Mid-markets. Alan Brown and Anthony Fry are CEO and chairman of Cala respectively.

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