GREENWICH, Conn. and GUERNSEY,
July 15, 2014 /PRNewswire/
-- Starwood European Finance, a commercial real estate lending
and debt investment platform, announced today that it has deployed
approximately £264 million ($452
million) of capital through four separate transactions on
behalf of Starwood Property Trust (NYSE: STWD), Starwood European
Real Estate Finance ("SEREF") (LSE: SWEF) and private funds managed
by Starwood Capital Group.
Starwood Property Trust and private funds managed by Starwood
Capital Group have committed to a £101.75 million first mortgage
loan for the development of Baltimore Wharf, a 46-story residential
tower and 18-story housing development containing a total of 366
private residential and affordable housing units. Starwood Property
Trust will originate £86.75 million of the loan and private funds
managed by Starwood Capital Group will provide £15 million. The
loan's interest rate floats over LIBOR and has a term of 40 months.
Frogmore Real Estate, Galliard Homes, C J O'Shea Group Ltd. and LBS
Properties are the sponsors on the transaction. Urban Exposure has
served as a key transaction adviser, contributed as a minority
lender in the Facility and been appointed Facility Agent.
Ideally situated in the growing Docklands area of London, Baltimore Wharf is located just south
of the Canary Wharf central business district. The tower will
feature high-quality finishes, desirable views and state-of-the-art
amenities—including a split-level brasserie, bar and restaurant,
valet parking and a large-screen cinema room. Residential buyers
will have a choice of suites and apartments ranging from one to
five bedrooms. The tower units have been substantially
pre-sold.
In addition, Starwood Property Trust, SEREF and private funds
managed by Starwood Capital Group have provided a €99 million loan
for the refinancing and refurbishment of a new W branded hotel
located in the center of Amsterdam. Starwood Property Trust will
originate €58 million of the loan, SEREF will provide €25 million
and private funds managed by Starwood Capital Group will provide
€16 million. The loan's interest rate floats over Euribor and has a
term of two years with a one-year extension option. The sponsor is
Liran Wizman, a highly experienced
hotel owner and key shareholder in Grand City Hotels, a highly
rated pan-European hotel management company. Slated to be completed
in the third quarter of 2015, the refurbished hotel is based in
Spuistraat, a prime location within the city that provides easy
access to transportation links and attractions including the Royal
Palace and Dam Square, which the hotel adjoins. Property finance
boutique Buchler Barnett Spencer acted as advisor for the
sponsor.
"Funding two high-profile commercial real estate projects such
as the development of Baltimore Wharf and the refurbishment of
the W Amsterdam reflects the depth
of our lending platform in Europe
and our ability to continuously source attractive financing
opportunities outside of the United
States," said Jeff Dishner,
Senior Managing Director and Global Head of Real Estate
Acquisitions at Starwood Capital Group. "We continue to reaffirm
Starwood Capital Group's position as the global property market's
trusted and preferred lender."
SEREF also provided a £27 million loan for the refinancing of
First Central 200 ("FC200"), a new, seven-story, 164,000
square-foot office building located within West London's Park
Royal business district, at Hanger Lane. Co-investors
Wainbridge Global Opportunities London Limited and a real estate
fund of funds managed by Morgan Stanley recently invested
substantial capital to complete the building's finishes, including
the lobby, elevators and floors—thus bringing the building to Class
A status. The property is currently 45 percent leased to Bechtel
Limited, the U.K. subsidiary of Bechtel Corp., a global leader in
engineering, procurement, construction and project management.
In addition, SEREF, along with private funds managed by Starwood
Capital Group, expanded an existing first mortgage loan by €36.1
million with MBAY Netherlands B.V., bringing the total financing to
€71.4 million. The total loan's interest rate floats over Euribor
and has a term of five years. The sponsor is a joint venture
between M7 Real Estate Ltd, an experienced multi-jurisdictional
operator of multi-tenanted light industrial properties, and Bayside
Capital, a credit-oriented investment firm.
The latest financing is the second increase to the facility, and
serves to facilitate the sponsor's acquisition of nine additional
light industrial properties throughout the Netherlands, bringing the total number of
assets in the portfolio to 28. M7 Cortona, the Dutch asset
management arm of M7 Real Estate, is providing its industry-leading
asset and property management services to the portfolio.
"We are pleased to provide flexible financing solutions that
will allow high-quality borrowers to carry out their business plans
on strong real estate," said Peter
Denton, Head of European Debt at Starwood European Finance.
"These financings demonstrate our commitment to working with
sponsors as they execute their investment strategies across
Europe. Our ability to quickly and
thoughtfully deploy capital when attractive, incremental
opportunities present themselves makes Starwood European Finance a
lender of choice in Europe."
To date, Starwood European Finance, on behalf of Starwood
Property Trust, SEREF and private funds managed by Starwood Capital
Group, has deployed approximately £1 billion throughout
Europe.
About Starwood European Finance
Starwood European
Finance is a commercial real estate lending and debt investment
platform that leverages the resources from Starwood Property Trust
(NYSE: STWD), Starwood European Real Estate Finance (SWEF:
London) and private funds
associated with Starwood Capital Group to originate, invest and
service commercial real estate debt investments in liquid markets
throughout the United Kingdom and
Continental Europe.
About Starwood Property Trust, Inc.
Starwood Property
Trust, Inc. is focused on originating, acquiring, financing and
managing commercial mortgage loans and other commercial real estate
debt investments, commercial mortgage-backed securities, and other
commercial real estate-related debt investments. The Company
through its 2013 acquisition of LNR Property, LLC (LNR) now also
operates as a special servicer in the
United States and as a primary and special servicer in
Europe and has expanded its
product offering to include fixed rate conduit loans. The Company
may also invest in residential mortgage-backed securities,
residential mortgage loans, distressed or non-performing commercial
loans, commercial properties subject to net leases and commercial
real estate owned. The Company is externally managed and advised by
SPT Management, LLC, an affiliate of Starwood Capital Group, and
has elected to be taxed as a real estate investment trust for U.S.
federal income tax purposes.
About Starwood European Real Estate Finance
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 U.K. and
Continental European markets. www.starwoodeuropeanfinance.com
Investor Relations
Zachary
Tanenbaum
Starwood Property Trust
Phone: 203-422-7788
Email: ztanenbaum@starwood.com
Media Relations
Jason Chudoba or Hayley Cook, ICR, Inc.
Phone: +1 203-682-8200
Email: Jason.Chudoba@icrinc.com, Hayley.Cook@icrinc.com
SOURCE Starwood Property Trust, Inc.