SWEF Updates on Irish Office Portfolio Loan

Starwood European Real Estate Finance Limited (SWEF) has provided an update on its €35.2 million mezzanine loan in Central Dublin. As of September 2024, the balance stands at €25.9 million, secured against seven properties. Initially representing 7% of NAV in 2019, the loan now accounts for 10.6% of the company's NAV as of August 2024. The loan, compliant with covenants, was reclassified as Stage-2 in 2023 due to increased credit risks.

The underlying assets face market challenges, prompting SWEF to work closely with stakeholders to determine capital expenditure and exit strategies. Recent updates led to a 50% impairment, equating to €12.9 million. Despite this, the board acknowledges potential outcomes may vary, aiming to maximize recovery.

Post-impairment, SWEF's NAV is £192.8 million, adjusting the NAV per share to 99.43 pence. The company plans to release its Q3 2024 update shortly, having returned £210 million to shareholders since January 2023.