Sixth Street lays foundations to rival Persimmon in race for Cala

An American investment firm has joined forces with one of the remaining bidders for Cala Group, the privately owned housebuilder which has been put on the market.

Sky News understands that Sixth Street has teamed up with Patron Capital Partners – Cala’s former owner – in an effort to trump a rival offer from Persimmon, the FTSE-100 housebuilder.

Sources said that Legal & General (L&G), which has owned Cala since 2018, was expected to make a decision imminently about which of the two bidders to sell it to.

L&G could yet opt to retain ownership if neither of the final bids for the housebuilder match its price expectations.

Antonio Simoes, the new chief executive of L&G, recently confirmed that Cala had been earmarked for sale.

He outlined the move alongside a number of measures aimed at simplifying the company.

Read more:Former Cala owner Patron joins race for £1bn housebuilderFTSE-100 housebuilder Persimmon weighs £1bn bid for rival CalaHousebuilder Cala revives £700m sale after Chinese bid fails

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Analysts expect Cala to fetch up to £1bn.

The latest stage of the Cala auction comes amid a flurry of corporate activity in the housebuilding sector.

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Bellway recently abandoned a bid for Crest Nicholson, while Barratt Developments is completing a £2.5bn deal to acquire rival Redrow.

L&G and Sixth Street declined to comment.