Strategic review could result in PRS REIT putting itself up for sale

Manchester-based private rented sector housing group, PRS REIT, has launched a strategic review that could result in its sale.

Last month it emerged an attempted boardroom coup had been settled with chairman Steve Smith agreeing to stand down and rebel shareholders Robert Naylor and Christopher Mills joining the board as non-executive directors.

Even when the shake-up bid was launched, in August, it was believed the aim could be to force a strategic review of the £592m business which could lead to its sale.

In a statement to the stock exchange this afternoon (October 23), the company said it is undertaking a strategic review “to consider the future of the company and to explore all the various strategic options available to enhance value for shareholders which may include a potential sale of the company”.

The board believes the company has successfully established the largest build-to-rent single-family home portfolio in the UK, creating significant asset value returns for its shareholders, it said.

Its existing portfolio grew to 5,425 completed homes by September 30, 2024, with an estimated rental value of £67.5m per annum.

Following the deal with its shareholders last month, the board said it has received feedback from a number of shareholders regarding the options available to the company to maximise value for shareholders.

Today’s statement said: “The board wishes to explore these options in a coordinated fashion, alongside engaging with a range of potentially interested parties.” 

It added: “Parties interested in submitting an expression of interest should contact Geeta Nanda, Senior Independent Non-Executive Director or Robert Naylor, Non-Executive Director.”

PRS REIT said it is not currently in discussions with, or in receipt of an approach from, any potential offeror at the date of today’s announcement.

It also confirmed it is now considered to be in an “offer period” as defined in the Takeover Code.

When the company announced its annual results earlier this month, it revealed a 17% increase in revenue to £58.2m and statutory pre-tax-profits of £93.6m, compared with £42.4m the previous year.