30 March 2020
NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, TO U.S. PERSONS OR IN, INTO OR FROM THE UNITED STATES, AUSTRALIA, CANADA, SOUTH AFRICA, JAPAN, NEW ZEALAND OR ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION
Starwood European Real Estate Finance Limited: Portfolio update
Starwood European Real Estate Finance Limited (the "Company" and, together with its subsidiaries, the "Group") hereby announces the agreement of commercial terms, and significant de-risking, of the largest hospitality asset in its lending portfolio.
The Borrower of the Hotel, Dublin, Ireland, on which the Company has a €60 million loan, has granted a licence to the Health Service Executive ("HSE"), Ireland's public healthcare provider, which allows the HSE to use the Hotel and Convention Centre for accommodation and the provision of healthcare and other important services to the Irish public. This licence will assist the HSE with delivering significant additional accommodation capacity and in its efforts to manage the expected increased demand for accommodation related to the coronavirus outbreak. The contract is effective immediately.
This hotel is the largest hospitality exposure in the portfolio, equating to approximately 10 per cent of total invested assets at 31 December 2019 and approximately 32 per cent of the Group's hospitality exposure at 31 December 2019. The Group's portfolio consists of a mixture of hotels under construction (which are therefore not expected to be income generating at this time), as well as income generating assets. As at 31 December 2019, approximately 73 per cent of the hospitality portfolio (by loan value) was considered income generating of which this asset equates to approximately 44 per cent (by loan value) of the income producing hospitality portfolio. The Group therefore considers that this contract has significantly de-risked the hospitality exposure of the portfolio.
For further information, please contact:
Apex Fund and Corporate Services (Guernsey) Limited as Company Secretary - 01481 735878
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.