Cromwell backs away from bid for RDI REIT
Australia’s Cromwell Property Group has said it will not make an offer to buy troubled landlord RDI REIT, after RDI decided a conditional proposal “undervalued” the company.
Cromwell said that after a period of diligence it submitted a conditional proposal, subject to approval from RDI’s board as well as a “short extension”. It did not disclose its proposed price or terms.
However, the REIT’s board “considered the proposal to undervalue RDI and its prospects and, as a result, the RDI board has taken the decision not to support a further period of due diligence”.
Australia’s Cromwell Property Group has said it will not make an offer to buy troubled landlord RDI REIT, after RDI decided a conditional proposal “undervalued” the company.
Cromwell said that after a period of diligence it submitted a conditional proposal, subject to approval from RDI’s board as well as a “short extension”. It did not disclose its proposed price or terms.
However, the REIT’s board “considered the proposal to undervalue RDI and its prospects and, as a result, the RDI board has taken the decision not to support a further period of due diligence”.
RDI, formerly known as Redefine International, said: “Since the initial unsolicited approach from Cromwell, the board has actively engaged with Cromwell in order to facilitate its due diligence requirements.
“The board has also received confirmation from Redefine Properties Ltd, the company’s largest shareholder, that the proposal was unacceptable to it.”
The Australian firm said it will remain focused on its “invest to manage” strategy, and that it has identified several value-add developments across the existing Australian balance sheet portfolio.
It added that it is actively pursuing other opportunities across its funds platform in Australia and Europe.
In March, Cromwell confirmed it had informally approached the REIT on a takeover.
Weeks later, it emerged that RDI had breached a covenant of a £144.7m debt facility for the four shopping centres that it had secured with Aviva, the insurer and asset manager.
RDI’s portfolio was valued at £1.62bn at 31 August. Its assets include shopping centres, retail parks, serviced offices and Holiday Inn Express hotels.
As of 31 December, Cromwell had A$11.5bn (£6.2bn) of assets under management, more than half of which were in Europe.
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