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31 July 2014
Starwood European Real Estate Finance Limited: Quarterly Factsheet Publication
Starwood European Real Estate Finance Limited (the "Company") announces that the factsheet for the second quarter ended on 30 June 2014 is available at:
The commentary contained in the factsheet provides updated guidance on the Company's investment pipeline and dividend policy. Extracted text of such commentary is set out below:
"As at 30 June 2014 the Group had committed 96 per cent. of net IPO proceeds.
The following transaction was closed since 30 June 2014:
W Hotel, Amsterdam: The Group has committed to provide €25 million out of a total of €99 million for the refinancing and refurbishment of a new W branded hotel located in the centre of Amsterdam. The sponsor is Liran Wizman, a highly experienced hotel owner and key shareholder in Grand City Hotels, a highly rated pan-European hotel management company. Expected to be completed in the third quarter of 2015, the refurbished hotel is based on Spuistraat, a prime location within the city and providing easy access to transport links and attractions including the Royal Palace and Dam Square, which the hotel adjoins. The first drawdown from the Borrower under this facility of approximately €9.3 million was made on 17 July 2014.
Since 30 June 2014 (to 30 July 2014) the Group also received a €1.3 million prepayment on the Retail Portfolio, Finland and a scheduled amortisation receipt on the Heron loan of £0.8 million.
Once the W Hotel loan is substantially drawn, the Group will be capable of delivering a net portfolio yield of approximately 6.9 per cent. on deals committed to date (after scheduled amortisation but prior to any other prepayments).
In the March factsheet, the Company noted that some of the new opportunities in the pipeline would require subsequent syndication to achieve target return levels. Of the new loans originated since the publication of the March factsheet, the Group expects to syndicate approximately £42 million releasing this for reinvestment in order to increase the net portfolio yield up from 6.9 per cent. to in excess of 7 per cent. We are in advanced discussions with credit approved acquirers in respect of these loans and expect to complete the syndications during the second half of the year.
Managing the timing and occurrence of these syndications with opportunities to re-invest the proceeds will be important to minimising cash drag and maintaining current returns.
Based on the current syndication plans and deals in the pipeline to re-invest those proceeds the Company remains comfortable that it will be able to pay an annualised 7.0 pence dividend upon completion of the syndication and re-investment, expected to be completed in the second half of 2014."
For further information, please contact:
Gary Gould / Stuart Klein
Jefferies International Limited
T: +44 20 7029 8000
Ravi Anand / Robert Peel
Dexion Capital plc
T: +44 20 7832 0900
Ipes (Guernsey) Limited
T: +44 1481 735869
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
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