10 March 2016

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Starwood European Real Estate Finance Limited: Investment Update

Starwood European Real Estate Finance Limited (the "Company") announces that on 10 March 2016 it advanced a €7.9 million whole loan relating to the acquisition of 44 apartments in South Dublin, the Republic of Ireland. The sponsor is a highly regarded local investor that is an existing borrower of the Company. The transaction represents the Company's third loan in the last 8 months secured by rented residential units in Ireland, an attractive asset class due to its consistent demand, stable income profile, and Ireland's growing economy.

The floating rate facility has a term of 4 years and the Company expects to earn an attractive risk-adjusted return in line with its stated investment strategy.

The new investment has been funded with drawings on the revolving credit facility. It remains the Company's intention to continue to the draw on the facility in the near term to optimise liquidity management of potential loan repayments and, once addressed, future equity issuance.

For further information, please contact:

Peter Denton - Starwood Capital - 020 7016 3664

Robert Peel - Dexion 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.