REG-Starwood European Real Estate Finance Ltd SWEF: Loan Repayments, and Facility Cancellation and Second Capital Distribution

Starwood European Real Estate FinanceAnnouncement

23/08/2023 11:45

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   Starwood European Real Estate Finance Ltd (SWEF)
   SWEF: Loan Repayments, and Facility Cancellation and Second Capital
   Distribution

   23-Aug-2023 / 11:36 GMT/BST

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                 Starwood European Real Estate Finance Limited

                           (the “Company” or “SEREF”)

                                        

   Loan Repayments, and Facility Cancellation and Second Capital Distribution

    

   The Board of Starwood European Real  Estate Finance Limited is pleased  to
   announce considerable progress achieved including two loan repayments  and
   the cancellation of  the Company’s  facility with Morgan  Stanley and  the
   Company’s second capital distribution of circa £30.0 million.

    

   Loan Repayments

    

   The Company is pleased to announce that  two loans were repaid in full  in
   July. These  investments comprised,  Hotels and  Residential, UK  -  £49.9
   million and  Mixed  Use, Dublin  -  €12.7m.  As a  result,  the  Company’s
   portfolio reduces from 17 to 15 investments.

    

   Debt Facility Cancellation

    

   SEREF has also cancelled the  £76.0 million facility with Morgan  Stanley.
   The only remaining facility is the Company’s modest £25.0 million facility
   with Lloyds which has been retained for working capital management.

    

   Second Capital Distribution

    

   In the Company’s 30 June portfolio  update, the Board emphasized the  need
   to build  a  cash  reserve  to cover  unfunded  loan  commitments  in  the
   portfolio, now totaling £45.6 million (30 June 2023 - £47.3 million).

    

   As a  result of  the recent  debt facility  cancellation and  the need  to
   retain a  cash reserve  for  unfunded loan  commitments, the  Company  has
   resolved  to   make  a   second  capital   distribution  totaling   (after
   expenses) circa £30.0 million to SEREF shareholders by way of a compulsory
   partial redemption of shares  at a price  of £1.0312 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 25  August  2023  (the
   "Redemption Date"), being the record  date for the Compulsory  Redemption.
   Circa 7.54  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  31 August 2023. Any
   certificates  currently  in  circulation  will  be  superseded  by  a  new
   certificate which will be distributed  to certificated shareholders by  31
   August 2023.

    

   The Company currently has 385,940,346 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, GG00BQWPBM39,  (the  "Old
   ISIN") will expire. The new ISIN number, GG00BPGJYV48, (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 29 August
   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 pleased to declare a second redemption distribution of circa £30.0
   million to  shareholders reflecting  our objective  to return  capital  to
   shareholders in a timely  manner while managing the  orderly wind down  of
   the existing  portfolio. The  two further  full loan  repayments  outlined
   today mark considerable further progress in meeting this objective as  the
   Company’s outstanding investments reduce from 17 to 15.

   SEREF  has  also  simplified  its   own  debt  arrangements  to   preserve
   shareholder capital,  cancelling the  £76.0 million  facility with  Morgan
   Stanley while retaining the sole outstanding £25.0 million Lloyds facility
   for working capital management purposes. While we have prudently  retained
   some capital  to  deploy  against unfunded  loan  commitments,  the  total
   portfolio average  life  remains  low  and we  look  forward  to  updating
   shareholders  on  further  loan  repayments  to  fund  additional  capital
   distributions in due course.”

    

   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:  1 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.  2 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.

    

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   Dissemination of a Regulatory Announcement that contains inside
   information in accordance with the Market Abuse Regulation (MAR),
   transmitted by EQS Group.
   The issuer is solely responsible for the content of this announcement.

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   ISIN:           GG00BQWPBM39
   Category Code:  MSCU
   TIDM:           SWEF
   LEI Code:       5493004YMVUQ9Z7JGZ50
   OAM Categories: 2.5. Total number of voting rights and capital
                   3.1. Additional regulated information required to be
                   disclosed under the laws of a Member State
   Sequence No.:   266641
   EQS News ID:    1709959


    
   End of Announcement EQS News Service

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References

   Visible links
   1. mailto:starwood@apexgroup.com
   2. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=27e2a13e1c60d1ed54a852446a61d90a&application_id=1709959&site_id=refinitiv2&application_name=news


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