19 November 2019

 

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 activity and RCF extension

Investment Activity

 

Starwood European Real Estate Finance Limited (the "Company" and, together with its subsidiaries, the "Group") is pleased to announce that on 18th November 2019 the Group committed to fund two new hotel acquisition financings for a total commitment of £64.3 million. Both investments are with the same sponsor and repeat borrower for Starwood Capital. Whilst the sponsor is the same on each investment, the two loans are not cross-collateralised as the investments sit in different fund vehicles.

 

Each financing has been provided in the form of a significant initial advance to finance an asset acquisition along with a smaller capex facility to support the sponsor's capital expenditure for improvements and rebranding of the hotels. The day one advance amounts are £25.9 million and £16.7 million whilst the total commitments are £41.35 million and £22.95 million respectively. Each loan is for a term of 5 years, and the Group expects to earn an attractive risk-adjusted return in line with its stated investment strategy.

 

Following these transactions, the proportion of the portfolio in the hospitality sector is back up to approximately 40% which is up from 33.8% at 30th September 2019 but slightly down from 40.5% at 30th June 2019, reflecting the repayment of the Barcelona hotel loan in the third quarter. The hospitality portfolio now comprises of seven separate loans spread across three countries, with a combination of whole and mezzanine loans. The portfolio provides a high level of diversification by asset location and type, risk profile and borrower within the hospitality sector.

 

Following these transactions, the Group has net debt of approximately £40 million with unfunded commitments to borrowers of approximately £66 million.

 

Revolving Credit Facility extension

 

The Company has agreed terms to extend the tenor on its secured Revolving Credit Facility ("RCF") provided by Morgan Stanley Bank, N.A. to November 2024. The total commitments have increased from £64 million to £76 million, in line with the Company's 30% of NAV maximum leverage capacity. In addition to this, the Company has also extended the tenor on its £50 million multicurrency RCF provided by Lloyds Bank Corporate Markets PLC to May 2021.

 

 

 

For further information, please contact:

Apex Fund and Corporate Services (Guernsey) Limited as Company Secretary - 01481 735879

Dave Taylor

 

Starwood Capital - 020 7016 3655

Duncan MacPherson

 

Stifel Nicolaus Europe Limited - 020 7710 7600

Mark Bloomfield

Maarten Freeriks

Mark Young

 

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. .

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.