Keepmoat Group has signed an agreement to sell its regeneration arm to French energy and services provider Engie in a deal valued at £330 million.

Specialising in the design, build and refurbishment of buildings and places, the Keepmoat regeneration business specialises is expected to be sold in a few months.

Keepmoat chief executive Dave Sheridan will transfer to Engie at completion, together with the entire Regeneration division’s infrastructure and all 2,500 employees.

Engie already employs 17,000 people in the UK and is a major provider of property services and energy management, including district heating, to local authorities and businesses.

Keepmoat’s venture capital owners, TDR and Sun Capital, who acquired the company in 2014, said that they will continue the growth strategy of the Keepmoat Homes business, which works with local authorities, registered providers and public sector land owners creating mixed tenure homes throughout the UK.

The Homes business, which has doubled in size since 2014, has an ambitious target to build more than 3,500 homes in FY18.

The highly experienced management team remains in place and continues to be led by Peter Hindley, who said: “Keepmoat has grown significantly by serving the huge demand for quality new homes that are well designed and offered at prices people can afford. We have the investment and sites to build more homes than ever before, and help yet more people secure a place of their own. Keepmoat will keep growing strongly.”

Keepmoat chief executive Dave Sheridan, who will join Engie, said: “The regeneration business has exciting prospects as part of Engie. It is very clear that Engie shares our belief that by working in partnership with local authorities and registered providers we can help cities and communities improve the places where people live.”

Wilfrid Petrie, CEO of Engie in the UK & Ireland, added: “Engie aims to be the number one partner for cities and places in the UK and with the Keepmoat regeneration business we are extending and deepening our relationships with local authorities right across the country.

“By combining our energy expertise with an expanded services capability we can make a bigger impact as we help to improve lives of the communities we serve. Today, buildings account for 30% of UK carbon emissions and our investment in Keepmoat’s regeneration business underlines our long-term commitment to the UK as it transitions to a lower carbon economy. This transaction will also support our growth ambitions for decentralised energy networks and our home energy business as the regeneration activities will bring us closer to the end customer.”