RDI REIT Shares Jump 32% On News Of Acquisition By Starwood

(Alliance News) - RDI REIT PLC on Friday announced its acquisition by London-listed investment ...

Alliance News 26 February, 2021 | 8:56AM
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(Alliance News) - RDI REIT PLC on Friday announced its acquisition by London-listed investment firm Starwood European Real Estate Finance Ltd for around GBP467.9 million, or ZAR9.76 billion.

London-based RDI REIT's shares surged on the news, up 32% at ZAR24.80 each in Johannesburg on Friday morning, and similarly up 32% at 120.60 pence each in London. Starwood shares were down 0.4% at 89.22 pence in London.

RDI REIT, a London and Johannesburg-listed real estate investment trust, said it has reached an agreement with SOF-12 Cambridge BidCo, a newly formed company owned by Starwood, regarding a cash offer for the entire issued share capital of RDI REIT.

RDI REIT's shares will be going for 121.35 pence each, representing a 33% premium to the closing price of 91.2p on Thursday in London.

This values RDI's entire issued share capital at around GBP467.9 million. RDI's current market capitalisation is GBP459.2 million, after its share price jump. Starwood European's market capitalisation is smaller, at GBP364.9 million.

Starwood bought a 30% stake in RDI REIT in July last year. The shares already owned by Starwood will not be bought by its acquisition vehicle.

"Given RDI REIT's scale and constrained access to capital, Starwood therefore believes the next stage of RDI REIT's evolution will be better suited to ownership under the control of Starwood," Starwood said.

Starwood European Real Estate Finance originates, executes and services commercial real estate debt in the UK and Europe. It is managed by Starwood European Finance Partners Ltd, an indirect wholly-owned subsidiary of the Starwood Capital Group.

By Greg Roxburgh; gregroxburgh@alliancenews.com

Copyright 2021 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Starwood European Real Estate Finance 88.20 GBX 0.34 -
RDI REIT PLC 121.00 GBX -0.33 -

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