Construction giant Kier is reportedly on the brink of selling its housebuilding arm to Guys Hands, the influential private equity founder of Terra Firma Capital.

The sale of Kier Living is expected to raise in the region of £120m for a company that reported a pre-tax loss of £225m in its latest set of annual results (2019/20).

Last September Kier, who are the UK’s second biggest construction behind Balfour Beatty, announced it was auctioning off Kier Living and a decision is expected this week.

Mr Hands, who made his name at investment bank Goldman Sachs, has reportedly been pursuing the deal for at least 12 months and was revealed as one of those in the running for the purchase earlier this year.

Kier has worked on most of the major recent infrastructure/construction projects including HS2, Crossrail, and Hinkley Point C. According to the most recent company data its annual turnover is £3.5bn (2019/20).

Kier did not respond to a request for comment.