25th Apr 2016 09:24
LONDON (Alliance News) - Starwood European Real Estate Finance Ltd said Monday it received full repayment of the GBP42.0 million Aldgate Tower, London loan on Friday.
The investment company said during April it also received the full repayment of the GBP10.8 million Salesforce Tower, London loan.
Starwood said it "constantly seeks to minimise cash drag and often manages repayment events by tactically using the GBP60.0 million revolving credit facility available to it".
As such, the proceeds of the two repayments will be used to repay the GBP41.7 million of current drawings on the revolving debt facility, Starwood said.
Starwood also noted that the Aldgate Tower loan, like many of the loans in its portfolio, benefits from prepayment protection, which provides a level of income protection should the loan be repaid whilst in the protection period.
The protection period for the Aldgate Tower loan is for its "early years", Starwood said, and the loan began in December 2014. Starwood said this means there is no effective drag on the funds for a further few months in which time Starwood will seek to reinvest the money and mitigate any cash drag on the sum.
Starwood said it expects additional loan repayments in the coming months and will also focus on reinvestment of any such expected proceeds prior to any consideration of further equity issuance.
Shares in Starwood were down 0.2% at 107.55 pence on Monday morning.
By Hannah Boland; [email protected]; @Hannaheboland
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