Shares in property firm RDI Reit rise after takeover approach

An Australian property firm is in talks to take over London-based investor RDI Reit, in a move that would substantially increase its presence in the UK.

RDI, which has offices, hotels and shopping centres across Britain and Germany, said it has received an unsolicited approach from Brisbane-headquartered Cromwell Property Group.

RDI is known in London for having a majority stake in a number of buildings, including in Southwark and Monument, used by trendy shared workspace brand Office Space In Town.

No potential price details were revealed. The update sent shares in RDI 16p higher, or more than 12%, to 145p. That values the business at £551 million.

Cromwell, which is working with Goldman Sachs and Morgan Stanley, has until April 23 to make a offer. JPMorgan is advising RDI.

Cromwell said any purchase would be in line with its strategy to “continue to expand its investment footprint in the UK and Europe”.

Interest comes despite some investors being nervous Brexit could hit occupier demand for UK offices.