PRS REIT agrees sale of housing portfolio for £646m

The firm’s shareholders would be entitled to a dividend of up to 1.1 pence per share for the first quarter of financial year 2025-26, payable in November, under the proposed sale.

The sale is conditional on completion of due diligence by Waypoint and Bidco, and on approval of the sale by shareholders at a general meeting.

The organisations will aim to complete the sale by 30 November. After completion of the sale, PRS REIT will seek shareholder approval for the voluntary liquidation of the company and will distribute its net assets to shareholders as soon as possible.

PRS REIT, whose backers include Homes England through direct investments, has the largest build-to-rent single-family rental portfolio in the UK, with 5,443 rental homes as of March 2025.

As part of its ongoing strategic review, PRS REIT began a formal sale process in April this year, drawing a number of suitors including private equity firms Long Harbour and KKR.

The trust said it has not received any proposals on superior terms to the proposed sale to Waypoint, or an equivalent proposal that is not conditional on securing further funding.

“Accordingly, the board believes that the proposed sale provides the greatest certainty and cash return to shareholders of any of the proposals received,” it said.

PRS REIT has invested more than £1bn in its private rental housing portfolio located outside major cities. It has also raised more than £500m through a flotation in 2017 – and has since undertaken two further equity raises.

Last year, PRS REIT reported a growth in its profit after tax of £51.2m for 2023-24, as it underwent a shake-up of its board.