Starwood Capital is planning an IPO in the fourth quarter for its European debt investment platform, Starwood European Real Estate Finance (SEREF). The vehicle will seek to raise some 拢300 mln (EUR 376 mln) in the initial capital raising.
Starwood Capital is planning an IPO in the fourth quarter for its European debt investment platform, Starwood European Real Estate Finance (SEREF). The vehicle will seek to raise some 拢300 mln (EUR 376 mln) in the initial capital raising.
Dexion Capital and Jefferies are co-advisers and bookrunners for the operation, according to a news report by Real Estate Capital.
SEREF will invest across the debt capital stack, including senior, mezzanine or whole loans at average loan to value ratios of 25%-70% and is targeting an 8%-9% net total return, with a 7% dividend yield, reported Real Estate Capital.
US-based investor Starwood Capital said on Wednesday it was joining forces with Cushman & Wakefield Investors (CWI) to create Starwood European Finance Company (StarFin), a real estate finance platform designed to take advantage of financing opportunities arising from banks' retreat from property lending.
CWI will help source financing opportunities and provide market intelligence and research. StarFin is Starwood Capital's third major debt platform and follows its two debt platforms in the US which have lent over $10 bn, the company said in a statement.
StarFin will be led by Starwood Capital鈥檚 European management team, including senior managing director Jeff Dishner and Peter Denton, who joined as head of European debt from BNP Paribas in April this year. The platform will focus on the UK and Northern European real estate markets and will follow a broad loan origination (lending direct to the property owner) and acquisition (acquiring part of a loan made by another lender) model, investing across a combination of senior, whole, subordinated, bridge and development loans with a maximum portfolio loan-to-value of 75%.
