Bradford-based construction company Totty is being sold in a deal worth £23.3 million.

Totty is part of construction and development business Propencity, which is being sold by Leeds-based parent company Peterhouse.

Peterhouse is selling Propencity to Newco, a newly incorporated company which was set up by the Propencity management team.

The deal will see Newco pay £18 million for Propencity, with other money going to pay off debts.

The sale will go ahead if shareholders agree at a meeting to be held on January 3.

David Jackson, executive chairman of Peterhouse, said: "I am most pleased that we are able to announce today the sale of the Propencity, our construction and development business, to management."

Peterhouse is selling Propencity to concentrate on its support services operations.

A spokesman for Peterhouse said: "The construction operations of Peterhouse were a significant source of revenue and earnings, representing 64 per cent of revenue and 37 per cent of earnings in the year ended January 4, 1999.

"While the construction operations initially generated cash flows which were used to invest in growing the rest of the group, they returned modest profit margins and therefore the board implemented a strategy which focused on expanding the group's higher margin support services operations.

"In recent years, the board has successfully pursued its strategy of expanding its support services operations through a combination of organic growth and carefully selected acquisitions.

"These operations, particularly in telecommunications, power and rail infrastructure maintenance provide the Peterhouse Group with good margins and more predictable earnings."

If the deal gets the green light Philip Brierley, a director at Totty who is part of the Newco team, will resign from his position as a Peterhouse director.