Cromwell Property Group has made a possible takeover offer for London-listed RDI REIT, the companies confirmed in separate announcements today following recent press speculation.

Australia-based Cromwell said talks are ongoing between the parties and a further announcement will be made in due course, but “there can be no certainty that a formal offer will be made nor as to the terms of any offer”.

Cromwell said any transaction would be consistent with its strategy to work with its capital partners to grow funds under management and continue to expand its investment footprint in the UK and Europe.

Over half of Cromwell’s A$11.5bn (€7.23bn) of assets under management is concentrated in Europe. RDI has a £1.6bn (€1.88bn) diversified portfolio in the UK and Germany.

RDI REIT said it has “received an unsolicited approach from Cromwell”, adding that it will keep shareholders updated as appropriate.

At midday, RDI shares in London traded 11% higher a 143 pence, valuing the company at £543.5m.