LEGAL & General (L&G), the insurance and asset management group which owns Cala Group, is set to pick a new home for its housing subsidiary this week.
US-based investor Sixth Street has emerged as frontrunner to buy Cala, according to Sky News.
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The firm has teamed up with Cala’s former owner, Patron Capital Parterns, to try to win the race for the housebuilder.
Cala’s rival Persimmon, which was reportedly weighing up a bid as far back as May, remains hopeful of striking a deal.
Cala started in 1875 as the City of Aberdeen Land Association, and is now likely to be valued somewhere between £1.2bn and £1.3bn, more than previously estimated.
The company could yet retain ownership of the housebuilder should no bid match its price expectations.
An announcement from L&G on the future of Cala Group is expected this week.
