FINANCE: Starwood’s European debt fund increased its lending by 41% and posted an NAV rise of 5% to 106.5p per share in 2014.
Starwood European Real Estate Finance (SEREF) boosted lending from £156.4m to £221m throughout the full year to the end of December.
The fund lent to a total of 12 borrowers, five more than in 2013, but increased its loan-to-value exposure from 57% to 62.5%. Some 66% of all lending was in senior or whole loan capital structures with two syndicated last year.
Loan terms fell to 3.7 years from four years over the period.
SEREF’s portfolio yielded 9.6%, up from 9.2% in 2013, in line with the IPO target.
Euro-denominated loan exposure fell by 2.9% to 32.3% as the company voted to remove the 75% portfolio cap on UK investments.
In the last three months of 2014, SEREF took a revolving credit facility at 250bps over LIBOR at initial drawdown.
