Liquidity Facility and Investment Update

RNS Number : 9218Y

Starwood European Real Estate Finan

05 December 2014

 



5 December 2014

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

Liquidity Facility

Starwood European Real Estate Finance Limited (the "Company") announces that it has entered a £50,000,000 revolving credit facility (the "Facility") with a major UK clearing bank.

The Facility is intended for short-term liquidity and, under the investment policy, the Company is limited to borrowing an amount equivalent to a maximum of 20 per cent. of its NAV, at the time of drawdown. In calculating the Company's borrowings for this purpose, any liabilities incurred under the Company's foreign exchange hedging arrangements shall be disregarded.

The interest rate payable will depend on how long a particular loan is outstanding: LIBOR + 2.50% p.a. at initial draw down and increasing for loans outstanding for more than six months.

It is anticipated that amounts drawn under the Facility will be repaid using the proceeds of one or more issues of ordinary shares or by means of liquidity arising in the portfolio (including the proceeds of syndication of loans and the receipt of loan repayments and amortisation).

The undertakings and events of default are customary for a transaction of this nature.

Syndication

The Company also announces that, as stated in the June and September Quarterly Investment Updates, the Company has been in the process of executing partial syndication of some of the loans it has originated.  The Company has completed the syndication of a €35.9 million senior note on the Industrial Portfolio, Netherlands transaction.  This syndication is returns enhancing and releases funds for re-investment.

Investment Update

The Company also announces that along with other Starwood affiliated vehicles, it has reached an agreement to supplement its existing loan to Almacantar, a property investment and development company specialising in large-scale complex investments in London, for the comprehensive refurbishment of Centre Point, the iconic 34-story tower located at 103 New Oxford Street in Central London. The overall facility will increase by £45 million to £265 million, with the Company funding £5 million of the increase.

The Company has implemented the liquidity facility and the syndication with a view to being able to reinvest the available liquidity in potentially forthcoming transactions.

For further information, please contact:

Ipes (Guernsey) Limited

Gillian Newton

T: [phone]      

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 

 

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