SWEF : Investment Update

26 February 2018

 

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: Investment Update

 

Starwood European Real Estate Finance Limited (the "Company" and, together with its subsidiaries, the "Group") is pleased to announce that the Group has committed to three new investments.

 

The Group closed two loans in Ireland against two separate projects with the same sponsor:

 

i)                    a EUR60,000,000 floating rate whole loan to finance the acquisition of a 764 key hotel, 27 apart-hotel units and ancillary development lands in Dublin, Ireland. The financing has been provided in the form of a single advance for a term of 4 years with a 1-year extension option; and

 

ii)                  a EUR9,000,000 floating rate whole loan to finance the conversion of 84 apart-hotel units to residential use on an adjacent site also in Dublin, Ireland. The financing has been provided in the form of an initial advance along with a capex facility to fund the refurbishment works for a period of 18 months with a 6-month extension option.

 

Ireland remains one of the Group's target markets for further opportunities arising in line with the Group's investment policy.

 

The Group has also closed a EUR17,000,000 floating rate mezzanine loan secured by a shopping centre in Spain.  The property is well anchored, dominates its catchment and is positioned to benefit from the sponsors' active asset management strategy.  The financing has been provided in the form of an initial advance along with a capex facility implement further value enhancing initiatives.  The Group's loan complements an existing senior facility provided by Spanish banks, a structure that the Group sees potential to replicate further in Spain.  The loan term is 30-months with two 1-year extension options.

 

In the last 12 months, the Group has originated three Spanish loans with a total commitment of EUR108 million.  The pipeline for further investments in Spain is active, and Spain remains one of the Group's target markets for further opportunities arising in line with the Group's investment policy.

 

The Group expects to earn an attractive risk-adjusted return in line with its stated investment strategy on the three new investments.

 

The Group has also received full repayment of the Centrepoint, London loan following completion of the borrower's business plan.

 

Following this investment activity the Group has EUR49 million drawn on its revolving credit facility.

 

For further information, please contact:

Duncan MacPherson - Starwood Capital - 020 7016 3655

 

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.