Welcome to our new website! Let us know what you think..

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Starwood eyes peripheral Europe in push to deploy capital

Starwood eyes peripheral Europe in push to deploy capital

The £236 million Starwood European Real Estate Finance fund is looking to broaden its mandate in an effort to become fully invested.

Starwood, which lends to property firms, is seeking shareholders’ permission to make investments in Spain and Italy; it currently only has exposure to the UK, Holland and Finland. The fund also wants to increase its maximum allocation to ‘residential for sale’ properties from 20% to 30%.

‘The occupational real estate markets in Spain and Italy have shown tentative signs of recovery and investment demand has also significantly increased as both opportunistic and core investors have sought exposure,’ Starwood stated.

‘Whilst any investment in Spain or Italy would be approached with caution, the board believes that the company should have the ability on a selective basis to identify balanced risk/return opportunities in these countries if and when they arise.’

Starwood has however told investors that it will not act on any authority to lend in either country until its existing cash is fully deployed.

Since launching in December 2012, Starwood has struggled to use its capital. The portfolio is currently only around 70% invested, with chairman Stephen Smith acknowledging that the pace of investment has been ‘slower than anticipated’.

This left Starwood unable to meet its dividend target during its first year of operation. The trust had aimed to pay 3.5p for 2013, but managed only 1.9p. It is aiming for a 7p dividend this year, equivalent to around a 7% yield at the current share price.

Leave a comment
Citywire TV
Play Gervais Williams: the real reason to worry about Quindell

Gervais Williams: the real reason to worry about Quindell

Citywire AA-rated manager Gervais Williams has argued that sentiment is the true danger to Quindell.

Play AA-rated Lofthouse: 'maverick' tobacco settlements won't stop M&A

AA-rated Lofthouse: 'maverick' tobacco settlements won't stop M&A

Henderson International Income trust manager Ben Lofthouse shares his thoughts on recent developments in the tobacco sector in this video.

1 Play Renewable energy: what I found on my solar farm trip

Renewable energy: what I found on my solar farm trip

Renewable energy is attracting a lot of investor interest, so I headed to the UK's largest solar farm to find out more.

Your Business: Cover Star Club

Profile: Quilter Cheviot boss Baines sees more consolidation ahead

Profile: Quilter Cheviot boss Baines sees more consolidation ahead

Nineteen months on from the merger of Quilter Cheviot chief executive Martin Baines says the deal is now paying dividends.

Wealth Manager on Twitter