Starwood European Real Estate Finance expects Covid-19 to negatively impact its hospitality assets.
Hospitality accounted for 31.4% of Starwood’s invested assets at the end of 2019 and the firm expects a “particularly difficult hospitality trading period”.
However, the company said its investment manager was confident in the markets where the hospitality assets are located and its borrowers’ business plans for the assets over the medium to long term.
It added that each investment has a “significant cushion to real estate collateral value protecting its position” and that the investment manager was in regular contact with all of Starwood’s borrowers and was working with them to navigate the disruption form the pandemic.
Starwood said its loans had modest senior LTVs, providing “substantial headroom”.
In addition, the firm said its net debt was just £16.5m at the end of February, equivalent to 3.9% of its NAV, and it had undrawn revolving credit facilities of £98.5m.
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