9 March 2020
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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") is pleased to announce the following investment activity during February 2020.
On 12th February 2020, the Group committed to fund a hotel acquisition financing for a total commitment of £15.0 million. The sponsor is a repeat borrower for the Group. The financing, which has been provided in the form of a significant initial advance to finance an asset acquisition together with a smaller capex facility, will support the sponsor's capital expenditure for improvement and rebranding of the hotel. The day one advance amount is £10.5 million whilst the total commitment is £15.0 million. The loan is for a term of 5 years.
On 27th February 2020 the Group also committed to fund a £20.0 million upsize to an existing fixed rate mezzanine loan to support the development of a mixed-use scheme in London. Starwood Property Trust, Inc (through a wholly owned subsidiary) is participating in 50 per cent of the loan amount, providing the Company with a net commitment of £10.0 million. The remaining loan term is 1.75 years with a 1 year extension option. The Group expects to earn an attractive risk-adjusted return in line with its stated investment strategy for each of these commitments.
The Group received a full and final repayment of the €16 million loan on an office in Paris and €9.3 million of unscheduled amortisation on the loan on the mixed portfolio in Europe, following a portfolio of asset sales which was in line with the borrower's business plan.
Following this investment activity, the Group remains fully invested with approximately £16.5 million of net debt, and commitments of approximately £78 million. The Group's pipeline remains strong and well diversified by sector, geography and investment type.
For further information, please contact:
Apex Fund and Corporate Services (Guernsey) Limited as Company Secretary - 01481 735879
Starwood Capital - 020 7016 3655
Stifel Nicolaus Europe Limited - 020 7710 7600
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.