Crest Nicholson, the housebuilder, is considering asking shareholders, including the HBOS banking group, for additional capital, alongside attempts to restructure the building company's debt.

The high street bank bought Crest Nicholson last year through Uberior Investments, its private equity arm, in partnership with West Coast Capital, the investment vehicle of Sir Tom Hunter, the Scottish entrepreneur.

However, since the £715 million buyout, the property sector has been in turmoil, with the credit crunch hitting demand for houses. Crest said in June that its 2007 profits were £69.7 million, down from £80 million the previous year.

Sources close to Crest said that it was holding meetings with its investors to discuss the possibility of putting in additional equity. It is also attempting to renegotiate the terms of its debt.

HBOS is thought to be considering inviting a new partner to buy into the company, to provide much-needed capital. Hedge funds and private equity groups are thought to be interested in the proposition.

At the time of the buyout, Bank of Scotland, which raises money for HBOS, provided Crest with a debt package of £1.1billion, which was used to refinance Crest's existing debt and as working capital. However, the housebuilder is not thought to have any immediate banking covenant tests to meet, and so an announcement on any renegotiation of the debt is not expected in the short term.

Crest has appointed Deloitte to advise it on how to deal with its cash difficulties. The company declined to comment yesterday, as did HBOS. West Coast Capital did not respond.

HBOS has taken equity stakes in a number of property companies, as well as being one of the biggest lenders to the sector. It had £4.1 billion in lending and investment exposure to the sector at the end of June.

Redrow, the housebuilder, has appointed KPMG to advise it on negotiations with its lenders.

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