SWEF: Update on Office Portfolio, Ireland

DJ SWEF: Update on Office Portfolio, Ireland

Starwood European Real Estate Finance Ltd (SWEF) 
SWEF: Update on Office Portfolio, Ireland 
21-Oct-2024 / 07:00 GMT/BST 
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THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION EU 596/2014 
AS IT FORMS PART OF UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018. 
 
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, TO US PERSONS OR INTO OR 
WITHIN THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN, OR ANY OTHER JURISDICTION WHERE, OR TO ANY OTHER PERSON TO WHOM, 
TO DO SO WOULD BE UNLAWFUL. THE INFORMATION CONTAINED HEREIN DOES NOT CONSTITUTE OR FORM PART OF ANY OFFER TO SELL OR 
ISSUE, OR ANY SOLICITATION OF ANY OFFER TO PURCHASE, SUBSCRIBE FOR OR OTHERWISE ACQUIRE, ANY INVESTMENTS IN ANY 
JURISDICTION. 
 
 
Starwood European Real Estate Finance Limited 
Portfolio Update 
Update on Office Portfolio, Ireland 
 
Starwood European Real Estate Finance Limited (the "Company" or "SWEF") provides an update on the loan investment 
called Office Portfolio, Ireland. 
 
On 2 January 2020 SWEF committed to a EUR35.2 million mezzanine loan secured on a portfolio of 12 properties in Central 
Dublin, an investment which equated to 7.0 per cent of NAV as of 31 December 2019. The successful sale of some assets 
in 2021 and 2022 reduced the balance of the loan and as of 30 September 2024 the remaining balance (including accrued 
interest) is EUR25.9 million secured against a remaining portfolio of seven properties. As of 31 August 2024, the loan 
represents approximately 10.6 per cent of the Company's Net Asset Value ("NAV"). The loan has remained in compliance 
with its covenants but was re-classified as a Stage-2 loan (significant increase in credit risk since initial 
recognition) in the first half of 2023. 
 
In the Q2 2024 Quarterly Portfolio Update, released on 24 July 2024, the Company provided the following update on the 
loan: 
 
"The underlying assets comprise seven well located European city centre CBD buildings and are well tenanted, albeit 
certain assets are expected to require capital expenditure to upgrade to Grade-A quality to retain existing tenants 
upon future lease expiry events. The loan remains in compliance of its third-party senior loan facility and the Group's 
mezzanine loan facility, however given the persisting challenging market dynamics, the Group is working closely with 
the sponsor, a very large institutional asset manager, and a leading global valuation and advisory firm to identify 
future capital expenditure needs, funding sources, exit values and the business plan to exit". 
 
Since then, the sponsor of the loan has provided new operational updates and the Board has evaluated various business 
plan scenarios and the uncertainty related to these scenarios. As a consequence of this new information, combined with 
the challenging local office market dynamics, the Board has determined to provide for a 50 per cent impairment of the 
Company's loan, equivalent to EUR12.9 million. Nevertheless, the Board and the Investment Adviser consider that there are 
a wide range of possible outcomes whereby the loan may have a lesser or greater degree of recovery due to the ongoing 
uncertainty related to the various business plan scenarios. The Investment Adviser will be actively managing the 
position to maximise the opportunity for value recovery. The Company looks forward to providing further updates as 
appropriate and when practically available. 
 
As of 31 August 2024, the Company's NAV was GBP203.7 million and NAV per share was 105.02 pence. After adjusting for the 
impairment of the Office Portfolio, Ireland loan, the adjusted NAV is GBP192.8 million and adjusted NAV per share is 
99.43 pence as of 31 August 2024. 
 
The Company is currently finalising its third quarter Quarterly Portfolio Update, which is expected to be published 
later this month. To date, the Company has returned GBP210 million to shareholders in Compulsory Redemptions in 
accordance with its orderly realisation strategy adopted on 27 January 2023. This is equivalent to 50.8 per cent of NAV 
as of 31 January 2023. 
 
For further information, please contact: 
 
Apex Fund and Corporate Services (Guernsey) Limited as Company Secretary 
 
Duke Le Prevost 
T: [phone] 
E: [e-mail] 
 
Jefferies International Limited 
Gaudi Le Roux 
Harry Randall 
Ollie Nott 
 
T: [phone] 
 
The person responsible for arranging the release of this information on behalf of the Company is Duke Le Prevost. 
 
A copy of this announcement can be found on the Company's webiste: www.starwoodeuropeanfinance.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. 
 
Information regarding forward-looking statements 
 
This announcement contains (or may contain) statements that are, or may be deemed to be, "forward-looking 
statements". Forward-looking statements are based on current expectations and projections about future events and 
other matters that are not historical fact. These forward-looking statements are sometimes identified by the use of a 
date in the future or forward-looking terminology, including, but not limited to, the words "consider" "aim", 
"anticipate", "believe", "intend", "plan", "estimate", "expect", "may", "target", "project", 
"will", "could" or "should" or, in each case, their negative or other variations or words of similar meaning. 
These forward-looking statements include matters that are not historical facts and include statements that reflect 
intentions, beliefs and current expectations. By their nature, forward-looking statements involve risks and 
uncertainties because they relate to events and depend on circumstances that may or may not occur in the future or are 
beyond the Company's control. They are not guarantees of future value or performance and are based on one or more 
assumptions. 
Forward-looking statements contained in this announcement apply only as at the date of this announcement. Subject to 
any obligations under the UK Listing Rules and FCA's Disclosure Guidance and Transparency Rules, the UK version of the 
Market Abuse Regulation or any other applicable law or regulation, the Company undertakes no obligation publicly to 
update or review any forward-looking statement, whether as a result of new information, future developments or 
otherwise. 
 
 
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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:      GG00BPLZ2K28 
Category Code: MSCU 
TIDM:      SWEF 
LEI Code:    5493004YMVUQ9Z7JGZ50 
OAM Categories: 2.2. Inside information 
Sequence No.:  353913 
EQS News ID:  2011947 
 
End of Announcement EQS News Service 
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October 21, 2024 02:00 ET (06:00 GMT)