Bilfinger has signed a deal to sell its €1.4bn (£1bn) building and facility segment to EQT Partners.
The transaction was approved by the supervisory board of Bilfinger this week, which has strong representation from its workers’ council. It is still subject to approval from regulators.
The Swedish private equity firm has bought the business – split into real estate, building and facilities management – through its EQT VII fund.
The €6.8bn fund, which closed last year, has an investment period of six years and a 10-year life. EQT typically holds its investments for 4.6 years.
EQT said: “The focus going forward lies in further developing the integrated services offering across its growing European platform.”
Parties including Lambert Smith Hampton owner Countrywide are eager to buy the real estate division from EQT.
However, Andreas Aschenbrenner, partner at EQT Partners, said: “The plan is to expand building and facility’s already strong platform by organic growth as well as via acquisitions and to grow stronger than the market in Europe.
“The intention is to create a European leader in the real estate services sector… to achieve this, we look forward to working together with the experienced and successful management of all the three divisions.”
EQT is to pay Bilfinger in instalments, including 49% of the resale proceeds when it eventually sells the business.
