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PRS REIT confirmed that U.S. private equity giant KKR has joined its formal sale process, which already includes a takeover bid from Long Harbour. While no formal offer has yet been made, KKR's entry lifted PRS REIT's shares by 8.8% to 106.6 pence, topping the FTSE mid-cap index. Long Harbour's existing cash offer, submitted in June, values the REIT at £631.6 million, or 115 pence per share. Analysts say weak UK valuations are drawing U.S. investors, with KKR pursuing multiple British firms this year. PRS REIT, focused on family rental homes, launched its sale process after a strategic review in late 2024.
British real estate investment trust PRS REIT has confirmed that U.S.-based private equity firm KKR has entered its formal sale process, which already includes an existing offer from property investor Long Harbour. Under the UK's structured sale framework, KKR can engage with PRS REIT as an interested party without having to make a public offer immediately. PRS REIT has clarified that it has not yet received a formal bid from KKR. Advertisement
When contacted, KKR declined to comment on the matter.
Following this development, PRS REIT's shares jumped 8.8% to 106.6 pence, making it the leading performer on the FTSE mid-cap index. Analysts note that weaker valuations in the UK have increased the appeal of British assets to U.S.-based investors, with UK-listed real estate investment trusts seeing growing interest from buyers seeking expansion amid economic uncertainty.
KKR has been active in pursuing UK-listed companies in 2025, including a $6.4 billion offer for Spectris and an unsuccessful attempt to acquire Primary Health Properties.
PRS REIT also stated that Long Harbour has not withdrawn its takeover offer, originally submitted in June, valued at 631.6 million pounds (around USD 854 million). Under this proposal, PRS REIT shareholders would receive 115 pence per share in cash.
The company, which primarily invests in family homes within the private rented sector, initiated the formal sale process after completing a strategic review last October. This review followed changes to the board, including the replacement of two members and the chair.
Source: Reuters
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