LONDON - PRS REIT plc, a real estate investment trust specializing in high-quality, new build, family homes for the private rented sector in the UK, has initiated a strategic review to evaluate the company's future, which may lead to a potential sale. The review aims to enhance shareholder value and includes engaging with possible interested parties.
The company has established itself as a leader in the build-to-rent single-family home market in the UK, with a portfolio of 5,425 completed homes as of September 30, 2024, boasting an estimated rental value of £67.5 million annually. PRS REIT reports exceptional occupancy and rent collection rates, standing at 98% and 100% respectively, and sees continued positive prospects amid a structural shortage of quality family rental homes in the UK.
Following shareholder feedback received since September 13, 2024, the Board is considering various strategic options in a coordinated effort. The process, conducted under the Takeover Code as a "Formal Sale Process," allows for confidential discussions with interested parties who, after entering into satisfactory non-disclosure and standstill agreements, will be provided with business information and invited to submit proposals.
The Board has the discretion to modify or terminate the process at any time and to decline any approach or end discussions with any interested parties, with appropriate announcements made as necessary.
As of the announcement date, PRS REIT is not engaged in discussions with any potential offerors. The Takeover Panel has granted exemptions from certain Takeover Code requirements, meaning participants in the sale process will not be publicly identified and are not bound by the typical 28-day deadline for making an offer.
While this announcement marks the beginning of an offer period as per the Takeover Code, with applicable dealing disclosure requirements, it does not indicate a definitive intention to make an offer. There is no certainty that the review will result in any offers, sales, strategic investments, or transactions, nor the terms of any potential deals.
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