A Scottish house builder with more than 150 Midland properties has been acquired for £210 million.

CALA Group, which has offices in Henley-in-Arden, has been sold to private equity group Patron Capital Partners and insurance company Legal & General.

CALA completed 153 homes in the Midlands in the last financial year and is building in Moreton-in-Marsh, Shrewsbury, Rugby and Eastcombe, Gloucestershire.

It also has forthcoming developments in Crowle and Pebworth in Worcestershire.

CALA’s premium market positioning and presence in more affluent areas such as the The Cotswolds enabled the Group to return to profitability in 2011 for the first time since 2007, one year ahead of management’s plans.

Under the terms of the agreement Legal & General and Patron will each take a 46.5 per cent equity stake in CALA alongside CALA’s existing senior management team who will take a seven per cent share.

The transaction comprises £140 million of equity and £70 million of debt.

Keith Breslauer, managing director of Patron, said: “A continued undersupply of new housing in the UK, coupled with the availability of land at a lower point in the cycle and legislation to promote development, creates a favourable backdrop for this deal.”