Kier’s recently-sold housebuilding arm will be rebranded as Tilia Homes.

Over the weekend the property giant confirmed the £110m sale of Kier Living to financier Guy Hands, who will operate Tilia out of a new company – Foster BidCo Limited.

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The sale is subject to approval by shareholders next month and it is expected to be confirmed in June. Hands has paid £40m up front with the balance due on completion of the deal.

Kier is due to publish interim results on Wednesday when further details of the sale are expected to be revealed.

Kier Living chief executive David Bridges said: “The announcement does not in any way change our activities on our developments. Properties will be built by the same team to the same high standards and with the same focus on providing the best possible service to our customers.”

The sale concludes a two-year search for a buyer as the Kier board has sought to consolidate debt issues exacerbated by the fallout from the Coronavirus pandemic.

Andrew Davies, Kier’s chief executive, added: “The actions we have taken over the last two years have created a strong operational platform for sustainable profitable growth and free cash flow.

“The disposal of Kier Living delivers another key milestone in the Group’s strategy to simplify the business and strengthen its balance sheet.”

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Kier chief executive Andrew Davies