Diversified construction group JRL is close to striking a deal to sell a stake in the £826m turnover business.

Talks with a Far Eastern property and construction group are described as being ‘very advanced’.

The deal will strengthen JRL’s balance sheet and boost liquidity while opening the opportunity to take forward schemes for the buyer in the UK.

The unnamed buyer is expected to take a substantial minority stake in the Hertfordshire-based business, which last month reported heavy losses after what chairman John Reddington said were the ‘most challenging two years in the firm’s history’.

Following a forensic contract review last year, JRL drew a line under all risks on legacy contracts booking losses over 2o22 (restated) and 2023 totalling £83m.

This prompted the firm to take steps to boost liquidity by over £50m.

A JRL spokesman said: “An international property and construction group is intending to invest in the business.

“The transaction, which will see the partner acquire a non-controlling equity stake in JRL, will significantly strengthen the position of the business and allow it to deliver on its strong pipeline.

“The business has a strong order book of £1.5bn and several high-value contracts secured over the coming years.”

News of refinancing talks came as JRL’s Midgard main contracting business was selected to deliver the next tranche of rental housing blocks at North London’s Brent Cross Town development being developed by Related Argent and Barnet Council.

Midgard will build the next phase of build to rent flats across four blocks at the heart of the 180 urban regeneration scheme. This will deliver 276 new rental homes, 50 of which are for social rent.

Work will commence on site early next year with the first move-ins expected by mid-2027.