24th Oct 2013 17:59
LONDON (Alliance News) - Starwood European Real Estate Finance Limited Thursday said it is currently in the final stages of execution of a loan which will account for an investment of a further 17% of its net assets. The fund also said it would pay a full-year dividend of 1.9 pence per share, short of the 3.5p per share it had expected upon launch.
"We hope to make an announcement in the next seven to ten days and fund during November. If this loan closes the company would be 66.3% invested," the company said in a statement.
In its June factsheet, the company reported that it had six loans in the immediate investment pipeline with approximately GBP130 million of investment potential. It had expected that these
transactions would close by end September and if that were to occur the company would have been 68% invested or committed.
On Tuesday, Starwood European Real Estate Finance said it was set to lend out EUR21.8 million to finance the acquisition of an industrial and office portfolio in the Netherlands.
The company said it expected to earn a single digit return, in line with its investment criteria, and the loan is expected to be fully drawn before the end of October.
Based on that transaction, the company said it had made or committed to six investments, for a total value of approximately GBP116.1 million, representing 49% of net assets.
"For the period to December 31, 2013, the company now expects to be able to pay a dividend of up to 1.9 pence based on the six deals that have been closed or committed to date and the deal that is currently in the final stages of execution. In the event that further transactions close prior to the year end, the total dividend could be higher," the company added.
At launch, the company had targeted a dividend of 3.5 pence per share in respect of the period of admission on December 17, 2012 on to the end of the first financial year on December 31, 2013. This estimation had been made on the assumption that 50% of the company's cash would have been invested within six months from admission and the remainder within 12 months.
"Based on detailed projections, the company remains comfortable that when fully invested it will be able to meet its dividend target of 7.0 pence per annum," it said Thursday.
Starwood European Real Estate Finance shares Thursday closed at 100.25 pence, down 0.3%.
By Samuel Agini; [email protected]; @samuelagini
Copyright 2013 Alliance News Limited. All Rights Reserved.
Related Shares:
Starwood Eur