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Cala contributes nearly £100m to L&G half-year profits

Legal & General builds houses of all different types and tenures through its various tentacles.

Its build-to-sell business, Cala Homes is the UK’s 10th largest house-builder by revenue and in the first six months of 2022 generated revenue of £701m (H1 2021: £610m) and operating profit of £98m (H1 2021: £78m) through the sale of 1,527 units (H1 2021: 1,479 units).  

With reservations on private units currently at a record 93% of the full year target, Cala looks set to deliver approximately 3,000 homes this year, bringing in £1.3bn revenue and £170m operating profit.

The affordable homes business has continued to establish itself as a leading institutional developers and managers of affordable housing.  It made £22m of operating profit (H1 2021: £7m), and increased operational affordable homes by 624 to 2,291.  Its development and operation pipeline now stands at more than 7,726 homes, with a gross asset value of around £1.2bn.  In March 2022, L&G teamed up with Lovell Partnerships to increase the delivery of affordable homes and mixed tenure sites.  Together they aim to deliver 3,000 multi-tenure properties over a five year period. 

Legal & General’s volumetric modular housing business generated more revenue in the first  half of 2022 than in all of 2021, with houses going up in Selby, Bristol and Broadstairs.

The urban build-to-rent business, in joint venture with Dutch pension fund manager PGGM, now has a £3.0bn portfolio of around 8,200 homes with 24 schemes in operation or development. The suburban build-to-rent business has built its pipeline to more 1,000 homes across the UK, including schemes in North Horsham and Peterborough. 

The Inspired Villages business, in partnership with Natwest Group Pension Fund, is on track to deliver more than 5,000 homes for older people over the next 14 years.  In the first half of 2022 it acquired a site in Horndean and secured planning permission for the third phase of its Ledian Gardens development (being built by Kier) near Leeds Castle in Kent.

Legal & General plc made a pre-tax profit of £1,367m in the first half of 2022.

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