HBOS is looking to sell most of its stake in retirement home specialist McCarthy & Stone just five months after buying it in a 拢1.1bn deal.

It is understood that the bank is having to scale back its portfolio in order to pursue bids for housebuilders Crest Nicholson and Wilson Bowden.

HBOS bought McCarthy & Stone in a consortium with Sir Tom Hunter鈥檚 investment vehicle West Cost Capital. The bank鈥檚 stake in the purchase was 58%.

The two parties are now carrying out due diligence on Crest Nicholson as part of a 拢713m bid. They are also rumoured to be in talks with Wilson Bowden about a 拢23 per share bid, which would value the housebuilder at 拢2.2bn.

Private equity groups often 鈥渇lip鈥� their investments after a short period of time if their value has risen. However, HBOS, which also owns stakes in Countryside Properties, Linden Homes and Fairview, normally takes a longer term approach and is thought to be making the move to concentrate on its other bids. It will retain a small stake in McCarthy & Stone.

Topics