PRS REIT agrees to sell operating subsidiary, entire property portfolio
The PRS Reit (The) said on Wednesday that it has agreed non-binding heads of terms to sell its main operating subsidiary, which holds its entire property portfolio, to a vehicle backed by Waypoint Asset Management in a deal expected to deliver about £633m in net proceeds to shareholders.
The FTSE 250 real estate investment trust said the proposed sale of PRS REIT Holding Company Limited to a Waypoint-advised fund would be for cash consideration of around £646.2m, with proceeds net of costs and tax estimated at £633.2m.
Shareholders would also be entitled to receive a dividend of up to 1.1p per share for the first quarter of the 2026 financial year, payable in November, without any reduction in the sale consideration.
The transaction remained subject to confirmatory due diligence by Waypoint, the signing of a sale and purchase agreement, and shareholder approval by special resolution at a general meeting.
PRS said the parties aimed to complete by 30 November, after which the board intended to seek shareholder approval to place the company into voluntary liquidation and return its net assets to investors.
The company said it had engaged with several potential bidders during its ongoing strategic review and formal sale process but had not received any superior written proposals, or any equivalent offers that were not conditional on securing further funding.
Its board said it believed the Waypoint deal "provides the greatest certainty and cash return to shareholders of any of the proposals received".
Waypoint is a London-based real estate investment and asset management firm overseeing more than £3bn of assets for UK pension schemes, institutional investors and other clients.
The capital for the deal would be provided by a co-mingled discretionary fund managed by Waypoint whose investors include leading UK local government pension funds.
At 0916 BST, shares in the PRS REIT were up 5.64% at 110.5p.
Reporting by Josh White for Sharecast.com.
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