Investment Update

17 December 2014

Starwood European Real Estate Finance Limited: Investment Update

Starwood European Real Estate Finance Limited (the "Company") announces that it has provided £6.9 million out of a total of £14 million junior loan to refinance a 5 star hotel in central London.

The loan's interest rate floats over LIBOR and has a term of 5 years. The Company expects to earn a return consistent with its target for junior loans.

For further information, please contact:

Ipes (Guernsey) Limited

Gillian Newton

T: +44 1481 735869

Notes:

Starwood European Real Estate Finance 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 Continental European markets. www.starwoodeuropeanfinance.com