Ediston Property (EPIC ) has confirmed it is in ‘advanced’ talks with Realty Income about the sale of its £208m retail parks portfolio.

A report that the $41bn US real estate investment trust was in pole position to buy the assets saw Ediston’s shares jump 10% last Wednesday.

Today the shares firmed 0.6% to 69.4p as the company said it was ‘in advanced discussions with RI UK 1 Limited, a wholly-owned indirect subsidiary of Realty Income Corporation, regarding a possible sale of the company’s property portfolio’.

Hopes of a deal have pushed the shares closer to their net asset value of 80.77p at 30 June, narrowing their discount to 7% against a one-year average of 24%, according to Numis Securities.

EPIC’s board cautioned there ‘can be no certainty at this time that a sale of the company’s property portfolio will take place; nor as to the final terms on which, or the price at which, any such sales might be undertaken’.

EPIC launched a strategic review and search for a merger partner in March as it concluded that it lacked the scale to deliver the best results for shareholders. While chairman William Hill said at the time that a merger was its preferred route, a sale of assets was also an option if it was in the best interests of shareholders.

The monthly dividend payer has repositioned its portfolio in recent years, selling its office and leisure properties to focus exclusively on out-of-town retail parks.

The pressure on listed commercial property funds from rising interest rates has led to several bids in the sector this year. In April, Industrials Reit (MLI ) was bought by US private equity giant Blackstone for £511m.

In May, Civitas Social Housing (CSH ) agreed an offer from CK Assets valuing it at £485m, and a 44% premium and earlier this month LondonMetric Property (LMP) completed a £198m acquisition of Columbia Threadneedle-managed CT Property (CTPT ).