Private equity firm Bridgepoint is close to finalising a £655 million deal to acquire Edinburgh-based Miller Homes, according to a report in the Financial Times.

Meanwhile, the proposed £600 million sale of Edinburgh-based upmarket home builder Cala Group — owned by insurer Legal & General and property specialist Patron Capital — to Evergrande Group, China’s second-largest property developer, stalled earlier this year, according to the FT.

The FT said Bridgepoint will buy Miller Homes, which faltered during the financial crisis, from its majority shareholder GSO, a division of Blackstone, and other minority stakeholders including Lloyds and Coller Capital.

The price being paid represents 5.1 times expected earnings before interest and taxes projected for 2017, the FT said.

The price also represents 1.3 times the value of the company’s £500 million assets.

The report said Bridgepoint is hoping to cash in on a shortage of one million homes in the UK with a specific focus in the north of England and Scotland.

It said the deal for Miller could be announced “in the next 48 hours” but the transaction could still fall apart.

Blackstone and Miller Homes did not respond to requests for comment.

Moelis is advising Bridgepoint and Rothschild is advisor to Miller Homes.