Private equity giant Kohlberg Kravis Roberts & Co (KKR) is in discussions with PRS REIT over a potential offer for the company.

The board of PRS REIT this morning confirmed media reports about the talks with KKR, stating that the US company was “participating in the company’s strategic review and formal sale process”. However, it added that there can be no certainty that an offer will be made.

PRS REIT put itself up for sale after a group of disgruntled shareholders requisitioned the company and forced the resignation of the chairman following poor performance and the award of an unmerited long-term contract to its investment manager.

The company said that the previously announced possible offer from Long Harbour has not been withdrawn, but remains subject to financing and due diligence.

PRS REIT’s share price jumped 7% on the announcement this morning.