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

Update: Placing of New Ordinary Shares to fund new lending

The Board of SEREF today announces that it is increasing the size of the placing announced at 7 a.m. on 20 July 2015 (the "Placing"). The Company will now issue up to 23,780,000 Shares, being approximately 9.9 per cent. of the Shares in issue, at a price of 103 pence per Share.

The Placing will now close at 5.00 p.m. today.

Other than set out above, all other terms and conditions of the Placing and the use of proceeds set out in the previous announcement remain unchanged.

For further information, please contact:

Peter Denton - Starwood Capital - 020 7016 3664

Robert Peel - Dexion Capital - 020 7832 0900