Starwood Property Trust And Starwood European Real Estate Finance Co-originate £288 Million Loan
- Loan Collateralized by London's Iconic Heron Tower -
- Transaction Reflects Starwood Property Trust's Robust European Pipeline -
GREENWICH, Conn., Oct. 10, 2013 /PRNewswire/ -- Starwood Property Trust, Inc. (NYSE: STWD) (the "Company") today announced the co-origination, with Guernsey-based Starwood European Real Estate Finance, of a £288 million first mortgage loan to refinance one of London's tallest and most iconic office buildings, the Heron Tower. Completed in 2011, the 46-story tower located at 110 Bishopsgate is situated in the heart of London. Heron International ("Heron"), a United Kingdom-based property developer which constructed the tower, is the Sponsor.
Starwood Property Trust will originate £270 million of the £288 loan and Starwood European Real Estate Finance will originate £18 million. A United States money center bank has agreed to provide a LIBOR-based £210 million collateralized term financing facility to Starwood Property Trust for this transaction – the Company's first based in non dollars and collateralized with non U.S. property – which will be secured by the loan. Starwood Property Trust will retain a £60 million junior investment. Both Starwood entities expect to earn attractive returns in line with their respective investment targets.
The loan was sourced based on a long-term relationship with the Sponsor and was structured and closed by Starwood Capital Group's European debt team led by President and Senior Managing Director Jeff Dishner and Head of European Debt Peter Denton.
Recognized as a pillar of innovation, the Heron Tower is an environmentally friendly, aesthetically pleasing structure that has redefined London's skyline. The property provides 460,000 square feet of accommodation including retail and leisure space on the ground level and top floors with 36 floors of offices in between. The building's unique architecture employs extensive use of clear glass to maximize daylight to the office floors, reducing the need for artificial lighting. In addition, exterior photovoltaic cells enable the Property to generate renewable energy, helping it achieve a BREEAM rating of "Excellent." The Heron Tower is conveniently located 200 meters from Liverpool Street Station, one of the biggest local and international commuter hubs in London.
Chatham Financial advised both lender and borrower.
About Starwood Property Trust, Inc.
Starwood Property Trust, Inc. is focused on originating, investing in, financing and managing commercial mortgage loans and other commercial real estate debt investments, commercial mortgage-backed securities ("CMBS"), and other commercial real estate-related debt investments. The Company through its 2013 acquisition of LNR Property LLC ("LNR") now also operates as special servicer in the United States and a primary and special servicer in Europe and has expanded its product offering to include fixed rate conduit loans. Starwood Property Trust, Inc. also invests in residential mortgage-backed securities ("RMBS") and residential real estate owned, and may invest in non-performing loans, commercial properties subject to net leases and residential mortgage loans. The Company is externally managed and advised by SPT Management, LLC, an affiliate of Starwood Capital Group, and has elected to be taxed as a real estate investment trust for U.S. federal income tax purposes.
About Starwood European Real Estate Finance
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
Investor Relations – Starwood Property Trust
Media Relations – Starwood Property Trust
Jason Chudoba, ICR, Inc.
SOURCE Starwood Property Trust, Inc.