Cala borrowing deal adds to surge in sales

SCOTTISH housebuilder Cala Group said yesterday it had extended its debt facility with Lloyds, while sales of its homes continue to recover.

The Edinburgh firm said the new £180 million facility was secured on broadly the same terms as its previous agreement with the bank, adding that the group planned to reduce its borrowing in the medium to long term.

Cala also reported that it had sold 322 homes between 1 July and 6 January, up 12 per cent on the same period a year earlier. Prices have risen 2 per cent with the average selling price now standing at £290,000.

The group has just over 3,000 plots in its land bank and said it would continue to buy land with planning prospects in “marketable locations”.

It returned to the black last year for the first time since the financial crisis. Yesterday it said the positive momentum had continued.