11 August 2021
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
€54.2m Spanish hotel loan repaid in full
Starwood European Real Estate Finance Limited and its subsidiaries ("the Group"), a leading investor originating, executing and managing a diverse portfolio of high-quality real estate debt in the UK and Europe, is pleased to announce that during July 2021 it received the full and final repayment of its €54.2m loan on a resort hotel in Spain.
The sponsor of the loan had completed a comprehensive refurbishment of the property in 2020 which was partially funded by the Group. The hotel re-opened as a luxury five-star resort property in May 2021 under a sponsor owned brand. The sponsor is an integrated owner, operator and developer of branded, award winning five-star luxury resorts in prime beachfront locations across the Mediterranean. The sponsor group benefits across its wider portfolio from high customer satisfaction (ranked #1 by TripAdvisor consistently) and superior operational performance with average occupancy rates of approximately 95 per cent through the season and high average daily rates. Guest reviews and forward bookings for the subject property in Spain are very strong, an affirmation of the quality of the hotel product, sponsor's management team, and strength of the brand. This also demonstrates the discipline of the Group's investment criteria in funding sponsors of significant strength and track record. The sponsor has repaid the Group's refurbishment loan in full following the successful execution of their business plan and re-financing.
Following repayment of this loan, the Group's exposure to the hospitality sector reduces by approximately 19 per cent to 33 per cent of the investment portfolio as it stood at 30 June 2021. Additionally, excluding this investment, the total amount of Stage 2 categorised investments (loans with increased credit risk as defined in the Q4 2020 Quarterly Investment Update) reduces by 29 per cent to approximately 27 per cent of NAV.
After repayment of this loan, the Group will have net cash on hand of £24.1m, increased from a net debt position of £9.6m as at 30 June 2021. The Group's pipeline of prospective new investments is robust, with a strong likelihood of re-investment of this cash within the medium term.
Stephen Smith, Non-executive Chairman, said:
"We are pleased to have received this payment in full, strengthening the robustness of our loan book and our cash balance. The investment adviser is actively exploring attractive re-investment opportunities in line with our stringent loan origination criteria."
For further information, please contact:
Apex Fund and Corporate Services (Guernsey) Limited as Company Secretary
01481 735814
Magdala Mullegadoo
Starwood Capital +44 (0) 20 7016 3655
Duncan MacPherson
Jefferies International Limited +44 (0) 20 7029 8000
Stuart Klein
Neil Winward
Gaudi Le Roux
Buchanan +44 (0) 20 7466 5000
Helen Tarbet +44 (0) 07788 528143
Henry Wilson
Hannah Ratcliff
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. www.starwoodeuropeanfinance.com.
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.
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