British real estate investor PRS REIT plans to sell unit for $881.2 million

Sept 17 (Reuters) - British real estate investment trust PRS REIT PRSR.L said on Wednesday it plans to sell PRS REIT Holding Company, which owns all its property assets, for about 646.2 million pounds ($881.2 million) to a fund advised by UK-based Waypoint Asset Management, sending its shares up 9%.

In addition to the proposed deal price, the REIT's shareholder's will receive a dividend of up to 1.1 pence per share for the first-quarter of fiscal 2026.

PRS, which focuses on family homes in the private rented sector, had launched a formal sale process following a strategic review that began last October after it replaced two board members, including its chair.

U.S. private equity firm KKR KKR.N without making a formal offer joined the REIT's sale process earlier this month which already involved a 631.6 million pound bid from property investor Long Harbour.

However, PRS said on Wednesday it did not get any better offers compared to Waypoint's or proposals that don't depend on additional funding.

"Board believes that the proposed sale provides the greatest certainty and cash return to shareholders of any of the proposals received," it said in a statement.

Shares in the Manchester-headquartered REIT climbed 9% at 114 pence in morning trade and rose to the top of the FTSE midcap index .FTMC.

After completing the divestiture, PRS will seek further shareholder approval for the voluntary liquidation of PRS REIT Plc.

($1 = 0.7334 pounds)