PRS REIT amends agreement with adviser amid strategic review

Private rental sector-focussed new build investor PRS REIT announced an amendment to its investment advisory agreement with Sigma PRS Management, its investment adviser, on Monday.

The FTSE 250 real estate investment trust said the updated agreement included a new ‘change of control' provision, allowing either party to terminate the agreement with 12 months' notice if a change in control of the company occurred.

It said the amendment followed the board's strategic review announced on 23 October, which aimed to explore options for enhancing shareholder value, including a potential sale of the company.

While not essential, the board said the change added flexibility in the event of a sale, allowing for smoother implementation of any transaction.

Sigma PRS Management was reportedly supportive of the amendment, emphasising its continued commitment to delivering the remaining portfolio and upholding the performance achieved thus far, while the board remained focussed on maximising shareholder value.

At 1052 GMT, shares in PRS REIT were up 1.13% at 107.8p.

Reporting by Josh White for Sharecast.com.