Privately owned housebuilder considering either sale or stock market flotation

Private equity group Terra Firma Capital is one of a number of firms to have tabled bids to buy privately-owned partnerships housebuilder Keepmoat, Housing Today understands.

The owners of £406m-turnover Keepmoat, TDR Capital and Sun Capital, are looking to dispose of the business either through a sale or a flotation on the stock exchange.

According to a report on Sky News, Terra Firma Capital, the vehicle of renowned investment banker Guy Hands, has tabled a £700m bid for the 2,460 homes-a-year housebuilder, which works predominantly in partnership with councils and housing associations to deliver new homes.

Keepmoat Homes

The bid by Terra Firma comes after the private equity business paid £110m for the housing business of contractor Kier at the start of the year. Terra Firma would look to combine the Keepmoat and Kier businesses if its offer is successful, Sky News said.

Keepmoat has been known to be up for sale for at least a year, however it is understood the business is also consideration a stock market flotation, given growing City valuations of “partnerships” housebuilding businesses in recent years.

The news about Keepmoat comes a week after housebuilder Countryside announced it was winding down its private housebuilding business in favour of growing its successful partnerships offering.

Housing Today understands no decision has yet been taken about either a sale or a flotation.

Spokespeople for both Keepmoat and Terra Firma declined to comment on the story.