21 March 2017

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Starwood European Real Estate Finance Limited: Investment Update

Starwood European Real Estate Finance Limited (the 'Company' and, together with its subsidiaries, the 'Group') announces that it has received full repayment of the Dutch Industrial Portfolio and Danish Industrial Portfolio loans as a result of the sale of both portfolios, representing a total of approximately £51.5 million sterling equivalent proceeds.

A number of loans in the Group's portfolio benefit from prepayment protection in their early years, providing the Group with a level of income protection should such loans repay whilst in that protected period. The Danish loan was originated in June 2015 and benefits from such provisions, meaning that the Group will bear no effective drag on the repayment of this loan for a further few months.

As reported in the December factsheet, the Investment Adviser is in advanced discussions on a number of opportunities. Heads of terms have been signed on two loans which have now moved into execution. These opportunities remain subject to final due diligence and documentation and, if they proceed, will allow the Group to deploy a substantial part of the available cash.

For further information, please contact:
Duncan MacPherson - Starwood Capital - 020 7016 3655
Robert Peel - Fidante Capital - 020 7832 0900

Notes:
Starwood European Real Estate Finance Limited is an investment company listed on the main market of the London Stock Exchange with an investment objective to provide Shareholders with regular dividends and an attractive total return while limiting downside risk, through the origination, execution, acquisition and servicing of a diversified portfolio of real estate debt investments in the UK and the wider European Union's internal market. www.starwoodeuropeanfinance.com.

The Group is the largest London-listed vehicle to provide investors with pure play exposure to real estate lending.

The Group's assets are managed by Starwood European Finance Partners Limited, an indirect wholly-owned subsidiary of the Starwood Capital Group.