Investment Update

23 December 2014

Starwood European Real Estate Finance Limited: Investment Update

Starwood European Real Estate Finance Limited (the "Company") announces that it has provided a £45 million participation in a £200 million facility for the refinancing of Aldgate Tower, a new Grade A office building located in the City of London (the "Property"). The facility will support the acquisition and stabilisation through lease-up of the Property.

The loan's interest rate is part fixed with part floating over 3 month LIBOR. The Company expects to earn an attractive risk adjusted return commensurate with its stated investment strategy.

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