SWEF : Investment Update

21 December 2017

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Starwood European Real Estate Finance Limited: Investment Update

Starwood European Real Estate Finance Limited (the "Company" and, together with its subsidiaries, the "Group") is pleased to announce that the Group has entered into a new revolving credit facility and that the Group has made a new investment.

On 18 December 2017 the Group entered into a new £64 million secured borrowing facility (the "Secured Facility"). The Secured Facility provides for additional flexibility and optionality for the Group to implement its investment strategies. The Secured Facility is a 5 year revolving credit facility allowing both for term financing of whole loans and additional capacity to bridge syndication strategies.

On 20 December 2017 the Group closed on a £45.87 million mezzanine loan secured by a well invested portfolio of geographically diversified hotels in strong regional UK cities. The Group expects to earn an attractive risk-adjusted return in line with its stated investment strategy.

For further information, please contact:

Duncan MacPherson - Starwood Capital - 020 7016 3655

Robert Peel - Fidante Capital - 020 7832 0900

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.