The private equity firm headed by British tycoon Guy Hands for the second time in less than two years is preparing to sell its aircraft leasing company, according to people familiar with the matter, as Chinese buyers help fuel demand for such businesses.

Terra Firma Capital Partners, which manages about $12.07 billion, aims to sell AWAS Aviation Capital in January or February next year and has hired an investment bank to advise on the process, according to the people familiar with the plan.