The share of London and JSE-listed landlord RDI Reit was on track for its best day in more than eight months on Friday, after it said Starwood Capital had made a buyout offer for the roughly 70% of shares it does not already own.

The offer, a premium of 33.1% to RDI’s closing price on Thursday, values RDI at about £467.9m (R9.7bn).

In morning trade on Friday RDI’s share had jumped as much as 24.7% to R23.49, giving the group a market value of about R8.9bn.

RDI has assets in Germany and the UK, but is in the process of shifting its focus to the latter, reducing its retail exposure.

The group’s share has halved over the past five years, and European retail landlords have been under some pressure from the rise of e-commerce. Brexit, and Covid-19, have also added pressure.

Starwood Capital is a private investment firm with a focus on real estate, and has more than $70bn (R1-trillion) in assets under management, according to information on its website.

Starwood has 29.59% of RDI’s shares, and should the transaction proceed, RDI would delist.

RDI chair Gavin Tipper said on Friday: “While the board believes in the quality of the portfolio and the strength of the management team, the significant uncertainty regarding a market recovery, strategy execution and any narrowing of the share price discount to net asset value, means that we believe that recommending this cash offer provides certainty of value and is in the best interest of our shareholders.”


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