US private equity giant KKR has entered the formal sale process for PRS REIT, the London-listed residential property investor, joining specialist property investor Long Harbour which has already submitted a bid for the business, according to a report by Reuters.
PRS REIT, which focuses on building and managing family homes for the private rental sector, has confirmed that KKR has been cleared under UK takeover rules to engage as an interested party without the obligation to immediately table an offer. While KKR has not yet submitted a bid, its involvement underscores growing private equity appetite for undervalued UK real estate investment trusts.
Long Harbour, which put forward a £631.6m ($854m) cash offer in June at 115 pence per share, remains in the running. PRS shares jumped nearly 9% on Monday to 106.6 pence on the news of KKR’s interest, making it the top performer on the FTSE mid-cap index.
The move marks KKR’s latest push into UK-listed companies in 2025, following its $6.4bn bid for Spectris and an unsuccessful approach for Primary Health Properties. A softer UK real estate market has made listed vehicles an attractive entry point for global private equity firms seeking scale, particularly in defensive, income-generating sectors like residential rentals.
PRS REIT launched the formal sale process after a strategic review last October, which also saw board changes, including the replacement of its chair. The company said Long Harbour has not withdrawn its offer.
