Apollo, the social housing group that is part of the HBOS bank, has hired big four accountant PricewaterhouseCoopers (PwC) to review the business in a move that could lead to a sale.
The group is part of the integrated portfolio that HBOS owner Lloyds is selling to secondary buyout group Coller Capital. However, Apollo is looking at the potential for a separate exit after the Coller transaction.
HBOS paid £410m for Apollo three years ago, but housing businesses have struggled during the downturn. There are a number of options for Essex-based Apollo including a sale, said a market source. He added that the review is at "an early stage".
"Debt could be refinanced, there could be a flotation, it could be combined with other parts of the HBOS portfolio or there might be new lines that could be pursued," he said.
Meanwhile, the Ftse 100 private equity firm 3i has hired Hawkpoint to sell NSL, a transport services group that was once half of National Car Parks.