Starwood European Real Estate Finance Limited (the "Company")

Director / PDMR Shareholding

17 December 2012

Pursuant to rule 3.1 of the Disclosure and Transparency Rules, Starwood European Real Estate Finance Limited announces that Mr Stephen Smith, the non-executive Chairman of the Company, acquired 40,000 ordinary shares at a price of £1.00 per ordinary share on 17 December 2012 through the offer for subscription made pursuant to the prospectus published by the Company on 28 November 2012.

Following this acquisition, Mr Smith holds 40,000 ordinary shares in the Company, representing 0.02 per cent of the Company's issued share capital.  The shares are registered in Mr Smith's name and are beneficially held by him.

For further information, please contact:

Dexion Capital:

Ravi Anand                      +44 (0)20 7832 0900

Robert Peel           

Jefferies:

Gary Gould                      +44 (0)20 7029 8000

Stuart Klein

Maitland:

William Clutterbuck          +44 (0)20 7379 5151       

Liz Morley