27 June 2014

Starwood European Real Estate Finance Limited: Investment Update

Starwood European Real Estate Finance Limited (the "Company") announces that it has committed to increase an existing €35.3 million whole loan facility by an additional €36.1 million of proceeds in cooperation with private debt funds associated with Starwood Capital Group. The Company's overall exposure will increase to €55.9 million. The additional funds will facilitate the acquisition of nine light-industrial and office properties in the Netherlands taking the overall portfolio to 28 assets. The loan is expected to be fully drawn before the end of June 2014. This marks the final increase in the facility as MBay, the joint venture between M7 Real Estate and Bayside Capital, completes its current light-industrial Dutch acquisitions strategy.

Following this transaction the Company has now substantially fully committed its net IPO proceeds.

Further information on future strategy and dividend outlook will be provided in the June fact sheet.

For further information, please contact:

Ipes (Guernsey) Limited

Gillian Newton

T: +44 1481 735869       

Notes:

Starwood European Real Estate Finance 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 Continental European markets. www.starwoodeuropeanfinance.com