Legal and General is drawing up plans to sell Cala Group, one of the UK’s biggest house building groups, which the company has owned for the past six years.
The finance and asset management group is said to be in talks with bankers at Rothschild to oversee the sale of the group.
Sources told Sky News that Cala was likely to be valued at £750m.
The business, which is headquartered in Edinburgh, Scotland, has been fully owned by Legal and General for the past six years.
The company originally bought a major stake in the firm back in 2013, before taking over the business completely in 2018.
Cala reported a fall in profits during the half year, largely due to high interest rates destroying demand for new homes.
If the Cala sale is completed, it will mark the first major decision by Legal and General’s new chief executive Antonio Simoes.
Simones, who is a former HSBC and Santander executive, replaced Nigel Wilson, one of the City’s most prominent business leaders. He stepped into the role at the start of January.
Simoes will receive a salary of £1.2m in the role with his first pay review taking place in 2025.
According to Sky News, Simoes described Cala as “a very strong business” during an earnings call last month where he was “quizzed about the housebuilder’s future ownership”.
Rumours of a possible disposal come amid a challenging period in the UKs property sector.
Raised mortgage rates have meant many buyers have struggled with affordability.
However, a number of players have remained cautiously optimistic about what they can deliver in the year ahead as Britain’s economic outlook is on track to improve.
The business is not one of the eight firms named by the CMA for suspicions around whether or not they had exchanged commercially sensitive information.
A spokesperson from Legal & General said: “Legal & General regularly review and conduct conversations about the future of all our various investments and subsidiary businesses as we seek to maximise value for our shareholders”