Home REIT PLC, which invests in sheltered housing for the homeless, said it received an unsolicited approach from Bluestar Group regarding a possible offer.
Any takeover, according to its statement, is likely to be in cash.
For the quarter ending November 2022, only 23% of rent was collected by Home REIT, with further uncertainty over the willingness or ability of the tenants to pay in the near future.
The group also said that roughly 67% of its portfolio needs refurbishment, which is estimated to cost around £15mln to £20mln.
In light of this, the board said it is considering all strategic options, including the possible sale of the company.
Home REIT stressed there is no certainty that an offer would be made.
The REIT has been under-pressure following a report by Viceroy, a short-selling specialist, which questioned Home Reit's financial health in a 27-page document in November.
Specifically, Viceroy raised concerns over Home Reit's receivables, quality and diversity of its major tenants.
Home REIT said at the time that the report was “inaccurate and misleading in its comments about the company, being based on mistaken assumptions, misinformed comments, and disputable allegations.”