The Cala Group has announced it has acquired Banner Homes, one of the UK's leading luxury house builders.

The investment by the Edinburgh-based housebuilder described the move as a "perfect strategic fit".

Last month, Cala, who currently has 17 active developments across Scotland, said it planned to double its size organically by 2017, and this acquisition will allow the company to "significantly accelerate" its plans.

No details regarding the value of the acquisition have been revealed, but it is understood Banner operates from 21 sites across three regional centres in the northern and southern Home Counties, as well as the Midlands.

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The combined business will now directly employ more than 600 people, and have a turnover of more than £500m in its first year, with net assets of £200m. Looking at the longer-term, Cala has said it expects to deliver around 2,000 homes a year by the 2017 financial year, with an average selling price of around £400,000.

In addition, the group said its business aims will remain focused on securing new land for development, with continued financial support from investors Patron Capital and Legal & General.

Commenting on the announcement, Cala Group Chief Executive, Alan Brown, said: "We are delighted to have acquired such a high quality business which fits perfectly with CALA's own market position and expansion plans.

"Banner has a deserved reputation as one of the finest luxury house builders in the UK and combining the two businesses will put us in the top 10 of UK home builders with significant growth potential.

"Both businesses build high quality homes, place a strong emphasis on customer service and have very similar cultures and I am tremendously excited about bringing together the best of both CALA and Banner in order to drive the enlarged group forward."

(JP/MH)