SWEF: Cancellation of Shares Held in Treasury

Starwood European Real Estate Finance Limited

(Ticker: SWEF)

Cancellation of Shares held in Treasury

The Board of the Company announces that it has resolved with immediate effect to cancel all of its 17,626,702 shares held in treasury.

The total issued capital is 395,592,696 shares and the total number of voting rights is 395,592,696, and this is the denominator which may be used by shareholders for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the FCA’s Disclosure Guidance and Transparency Rules.

Apex Fund and Corporate Services (Guernsey) Limited as Company Secretary

Duke Le Prevost

T: +44 (0) 203 5303 660

E: starwood@apexgroup.com

Jefferies International Limited

Gaudi Le Roux

Harry Randall

Ollie Nott

T: +44 020 7029 8000

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 conduct an orderly realisation of the assets of the Company. www.starwoodeuropeanfinance.com.

The Company 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.