(Correcting that RDI REIT is being acquired by a company owned by Starwood Capital Europe Advisers llp, not Starwood European Real Estate Finance Ltd.)
(Alliance News) - RDI REIT PLC on Friday announced its acquisition by funds managed by private-equity investor Starwood Capital Group for around GBP467.9 million, or ZAR9.76 billion.
London-based RDI REIT's shares surged on the news, up 34% at ZAR25.20 each in Johannesburg on Friday afternoon, and similarly up 33% at 121.40 pence each in London.
RDI REIT, a London and Johannesburg-listed real estate investment trust, said it has reached an agreement with SOF-12 Cambridge BidCo Ltd, a newly formed company owned by Starwood Capital Europe Advisers llp, 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 GBP462.0 million, after its share price jump.
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.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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Starwood Eur (SWEF)