New-build home specialist PRS Reit (PRSR ) has amended its investment agreement with manager Sigma, making it easier to terminate the contract should a bidder turn up.  

The £732m real estate investment trust’s rejigged board, which includes Citywire award-winning Chris Mills and Rob Naylor in place of the ousted Stephen Smith, said both parties could now terminate the agreement on 12 months’ notice.

The change follows the board’s decision to launch a strategic review and formally hoist the ‘for sale’ sign as looks to enhance value for shareholders and narrow the share price discount.

In July, the board extended the management agreement with Sigma until 2029, which a group of unhappy shareholders argued acted as a ‘poison pill’ as the management fees incurred would put off any prospective buyers. 

‘While the amendment is not considered to be a necessary change, it adds further flexibility as to how any potential sale of the company may be implemented,’ the trust said in a stock exchange update.

Sigma said it was pleased to accommodate the change as it continued to focus on delivering the remainder of the company’s portfolio and maintaining the excellent portfolio performance achieved to date, while the board pursued value maximisation for all shareholders.

Winterflood’s Emma Bird commended the newly constituted board and manager for coming to a ‘sensible agreement’ that helped to alleviate concerns over the poison pill that angered shareholders over the summer. 

The shares rose 1% to 107.6p on Monday morning, putting them up 39% since the shareholders first requisitioned in July and narrowing the discount – which hit a low of 39% over the past 12 months – to 20%, according to Deutsche Numis data.