1st Apr 2014 17:29
LONDON (Alliance News) - Starwood European Real Estate Finance Ltd Tuesday said that it has put out a proposal to shareholders to amend its investment policy, a move it says it justified in light of improving market conditions and after it missed out on opportunities due to its current policy.
The company said that the recommended proposal includes allowing the company the flexibility to make investments in Spain and Italy, and to increase the maximum allocation to "residential for sale" properties to 30%, from 20%.
"The board believes that this is justified in light of improving market conditions, the fact that opportunities have arisen in which the company has been unable to participate, notwithstanding that the transaction would have been acceptable on a risk/reward basis and the increased liquidity in the market which offers greater likelihood of a successful realisation," the company said.
"As the company approaches full investment, the Board believes that now is an opportune moment to extend the geographic scope of the investment policy and to increase the maximum allocation that can be made to the residential for sale sector," it said.
The occupational real estate markets in Spain and Italy have shown tentative signs of recovery, the firm said, and investment demand has also significantly increased as both opportunistic and core investors have sought exposure, it added.
Shares in the closed-ended investment company closed trading Tuesday 0.3% higher at 99.50 pence per share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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