PRS REIT PLC (LSE:PRSR) shares rose 6% to 110.8p after it struck a non-binding deal to sell the entire portfolio of property assets to a fund backed by London-based Waypoint Asset Management, for around £646.2 million cash.
A possible offer for the private landlord fund had been made by Long Harbour in June, which remains subject to financing and due diligence.
It said on Wednesday that it expects net proceeds of around £633.2 million from Waypoint, with shareholders also entitled to receive a dividend of up to 1.1p per share for the first quarter of FY26, payable in November, without reducing the sale consideration.
The sale to Waypoint, targeted for completion at the end of November, remains subject to due diligence, a sale and purchase agreement, and shareholder approval.
Following the sale, the board intends to distribute all the remaining proceeds to shareholders and wind down the company.
The company said it has "engaged with a number of potentially interested parties regarding a possible offer" for the company or its assets but has not received any written proposals on superior terms, or an equivalent proposal that is not conditional on securing further funding.
Under the terms of the agreement, a break fee of approximately £5.7 million would be payable to Waypoint in the event of a competing binding offer for the company or its assets.
Waypoint, co-founded by former Castlemore directors Nick Gregory and Mike Riley, has over £3 billion in real estate assets under management. Capital for the proposed transaction is being drawn from a fund backed by UK local government pension schemes.
The strategic review and formal sale process are ongoing, PRS REIT said, promising further updates in due course.
PRS REIT put itself up for sale last year after a spat with shareholders, which saw its chairman agree to step down.