Cromwell Group (ASX: CMW) has responded to media speculation about a possible takeover attempt.
Cromwell is a diversified real estate investor and manager with operations on three continents and a global investor base. At the end of 2018 it had a market capitalisation of $2.2 billion, a directly-owned property portfolio worth $2.5 billion and total assets under management of $11.5 billion across Australia, New Zealand and Europe.
Here’s What Cromwell Said
Cromwell confirmed that it has made an approach to RDI Reit PLC (LSE: RDI) about a potential takeover. Cromwell explained that this deal is in line with its strategy of growing funds under management and expanding its footprint in the UK and Europe, where over half of its assets under management are located.
Discussions between the two businesses are currently ongoing and Cromwell has 28 days to proceed with an offer or not. The shopping centres belonging to RDI would seem to be a suitable match for Cromwell’s operations.
Cromwell has a distribution yield of 6.6%, which is quite attractive with the low Australian interest rate. Compared to most REITs, Cromwell receives quite a large percentage of its rental income from government entities, which could make it more defensive.
However, I think there are more reliable ASX dividend shares to consider such as the ones revealed in the free report below.
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