Starwood Property Trust Announces Proposed Offering of Common Stock

GREENWICH, Conn., Dec. 7, 2010 /PRNewswire-FirstCall/ -- Starwood Property Trust, Inc. (NYSE: STWD) (the "Company") today announced that it plans to sell 20,000,000 shares of its common stock in an underwritten public offering.  The Company also plans to grant the underwriters a 30-day option to purchase up to an additional 3,000,000 shares of its common stock to cover over-allotments, if any.  All of the shares will be offered by the Company and will be issued under the Company's currently effective shelf registration statement filed with the Securities and Exchange Commission.

The Company intends to use the net proceeds received from the offering to purchase additional commercial mortgage loans and other target assets.  The Company may also use a portion of the net proceeds for other general corporate purposes, including, but not limited to, repayment of outstanding indebtedness and working capital needs.

Citi, Wells Fargo Securities, BofA Merrill Lynch, Deutsche Bank Securities and Goldman, Sachs & Co. will serve as joint book-running managers for the offering. The offering of these securities may be made only by means of a prospectus and a related prospectus supplement, a copy of which may be obtained by contacting: Citi, Brooklyn Army Terminal, 140 58th Street, 8th Floor, Brooklyn, NY 11220, Attention: Prospectus Department, Telephone: (877) 858-5407; Wells Fargo Securities, 375 Park Avenue, New York, NY 10152-4077, Attention: Equity Syndicate, (800) 326-5897 or [email protected]; BofA Merrill Lynch, 4 World Financial Center, New York, NY 10080, Attention: Prospectus Department or e-mail [email protected]; Deutsche Bank Securities, Attention: Prospectus Department, 100 Plaza One, Jersey City, NJ 07311, by calling (800) 503-4611, or by e-mail [email protected]; or Goldman, Sachs & Co., Prospectus Department, 200 West Street, New York, NY 10282, telephone: (866) 471-2526, facsimile: (212) 902-9316, e-mail: [email protected].

This press release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any state.

About Starwood Property Trust, Inc.

The Company focuses primarily on originating, investing in, financing and managing commercial mortgage loans and other commercial real estate debt investments, commercial mortgage-backed securities and other commercial real estate-related debt investments.  In addition, the Company may invest in commercial properties subject to net leases.  The Company also invests in residential mortgage loans and residential mortgage-backed securities.  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.

Forward Looking Statements

Statements in this press release which are not historical fact may be deemed forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although the Company believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from the Company's expectations include completion of pending investments, continued ability to acquire additional investments, competition within the finance and real estate industries, economic conditions, and other risks detailed from time to time in the Company's reports filed with the Securities and Exchange Commission.

SOURCE Starwood Property Trust, Inc.