SWEF: Investment Update

18 December 2019

NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, TO U.S. PERSONS OR IN, INTO OR FROM THE UNITED STATES, AUSTRALIA, CANADA, SOUTH AFRICA, JAPAN, NEW ZEALAND OR ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION

Starwood European Real Estate Finance Limited: Investment Update

Starwood European Real Estate Finance Limited (the "Company" and, together with its subsidiaries, the "Group") announces that, in line with the Group's expectations, the following loans have been repaid during the first half of December:-

• Logistics, Dublin, Ireland - the remaining loan balance of €14.1 million was repaid in full following a sale of the portfolio.

• Regional Hotel, Portfolio, UK - the loan of £45.9 million was repaid in full following a sale of the portfolio.

• Residential, Dublin, Ireland- the remaining loan balance of €2.2 million was repaid in full following completion of the borrowers business plan.

Following this investment activity the Group remains substantially fully invested with approximately £3 million of net cash and commitments of approximately £75 million. New commitments in 2019 were £225 million, with repayments to date of approximately £196 million, a net increase in commitments of approximately £29 million.  The Group's pipeline remains strong.

For further information, please contact:

Apex Fund and Corporate Services (Guernsey) Limited as Company Secretary - 01481 735879

Dave Taylor

Starwood Capital - 020 7016 3655

Duncan MacPherson

Stifel Nicolaus Europe Limited - 020 7710 7600

Mark Bloomfield

Maarten Freeriks

Mark Young

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 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 UK and the wider European Union's internal market. www.starwoodeuropeanfinance.com.

The Group is the largest London-listed vehicle to provide investors with pure play exposure to real estate lending.

The Group's assets are managed by Starwood European Finance Partners Limited, an indirect wholly-owned subsidiary of the Starwood Capital Group.