Starwood European Real Estate Finance Limited

(the “Company” or “SEREF”)

 

Loan Repayments and Third Capital Distribution

 

The Board of Starwood European Real Estate Finance Limited is pleased to announce two recent loan repayments and the Company’s third capital distribution of circa £45.0 million.

 

Loan Repayments

 

The Company is pleased to announce that two further loans were recently repaid in full. These investments comprised Office, London - £20.5 million and Mixed Portfolio, Europe - €3.6 million (balances as at 30 September 2023). As a result, the Company’s portfolio has reduced from 15 to 13 investments. In addition, since 30 September 2023, the Company has received partial repayments on a number of loans totaling circa £8.7 million. Altogether, these recent repayments comprise circa 8.7% of the 30 September 2023 NAV.

 

Third Capital Distribution

 

As a result of the recent full and partial loan repayments the Company has resolved to make a third capital distribution totaling (after expenses) circa £45.0 million to SEREF shareholders by way of a compulsory partial redemption of shares at a price of £1.0427 per share (being the last published NAV per share prior to this announcement) (the “Compulsory Redemption”). The amount applied to the Compulsory Redemption is after the deduction of costs and expenses which are expected to be circa £10,000.

 

Shareholder Information

 

The Compulsory Redemption will be affected pro rata to holdings on the share register as at the close of business on 14 December 2023 (the "Redemption Date"), being the record date for the Compulsory Redemption. Circa 12.09 per cent. of the Company’s issued share capital will be redeemed on the Redemption Date (the “Redemption Ratio”). Fractions of shares produced by the Redemption Ratio will not be redeemed, so the number of shares to be compulsorily redeemed from each shareholder will be rounded down to the nearest whole number of shares.

 

Payments of redemption monies are expected to be affected either through CREST (in the case of shares held in uncertificated form) or by cheque (in the case of shares held in certificated form) by 18 December 2023. Any certificates currently in circulation will be superseded by a new certificate which will be distributed to certificated shareholders by 18 December 2023.

 

The Company currently has 356,848,128 shares in issue. All of the shares redeemed on the Redemption Date will be cancelled and accordingly will thereafter be incapable of transfer by shareholders or reissue by the Company.

 

The shares will be disabled in CREST after close of business on the Redemption Date and the existing ISIN number, GG00BPGJYV48, (the "Old ISIN") will expire. The new ISIN number, GG00BQRGMH31, (the "New ISIN") in respect of the remaining shares which have not been compulsorily redeemed will be enabled and available for transactions from 8.00 a.m. on 15 December 2023. The share price TIDM, “SWEF.L”, will remain unchanged. For the period up to and including the Redemption Date, shares will be traded under the Old ISIN and as such, a purchaser of such shares may have a market claim for a proportion of the redemption proceeds following the activation of the New ISIN. CREST will automatically transfer any open transactions as at the Redemption Date to the New ISIN.

 

John Whittle Chairman of the Company commented:

“We are delighted to announce two successful full loan repayments, in addition to several recent partial repayments. As a result, the Company’s loan portfolio is reduced from 15 to 13 investments in total, representing strong progress in our ambition to realise the value of the Company’s portfolio for the benefit of our shareholders. We are delighted to announce a substantial third capital distribution of £45.0m the Company’s largest to date and a key milestone in our strategy to return cash to shareholders.”

 

For further information, please contact:

 

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

 

Duke Le Prevost

T: +44 (0) 203 5303 660

E: starwood@apexgroup.com

 

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 conduct an orderly realisation of the assets of the Company. www.starwoodeuropeanfinance.com

 

The Group's assets are managed by Starwood European Finance Partners Limited, an indirect wholly-owned subsidiary of the Starwood Capital Group.