A business services division of Brookfield Asset Management has paid $5B for a company that manufactures modular workspaces and homes.

Brookfield Business Partners has bought London-based Modulaire Group from fellow private equity firm TDR. The deal is expected to complete in the fourth quarter.

Modulaire creates modular workspaces for private sector companies and public sector bodies like schools and hospitals, and for modular homes. It has operations in 25 countries across the UK, Europe and Australasia with approximately 259,000 modular space and portable storage units and 3,400 remote accommodations rooms.

An example of its UK clients is Boxpark, the restaurant concept where a food hall is created out of multiple modular units that look like shipping containers.

Brookfield said Modulaire is expected to deliver strong continued growth, supported by significant market and secular trends including post-Covid-19 government stimulus programmes, ageing building stock across Europe and a structural shift toward modular space.

The business is also benefitting from strong ESG tailwinds as customers look to secure buildings with a smaller carbon footprint and reduced waste and energy consumption through construction, it said.