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Starwood European plans wind up

SWEF Euro cash

Starwood European Real Estate Finance says that following a review of its strategy and after seeking advice from its advisers, its board intends to recommend a strategy of orderly realisation and the return of capital over time to shareholders.

Under the current discount control mechanism, the company is required to redeem up to 75% of the shares in issue if the discount is greater than 5% during the six-month period ending 31 December 2022. The board believes that, following discussions with its larger shareholders, the likely take-up of a potential future tender offer would be significant and that the company would no longer be of a viable size to provide shareholders with sufficient liquidity and scale. Accordingly, it has resolved that the company should be placed into a managed wind-down. It is expected that any managed wind-down would be on an orderly basis and will align to the repayment dates of the relevant loan positions.

The orderly realisation of the strategy will not result in the liquidation of the company in the immediate future or require it to sell assets within a defined time frame. The strategy, if approved, would be implemented in a manner that would seek to maximise value to shareholders and it would remain a listed company during the orderly realisation.

A circular will be published and a meeting of shareholders convened to approve the proposal. It is the board’s current intention to maintain the current target level of dividend, whilst the company remains substantially invested.

The board is available to discuss the proposed managed wind down with shareholders ahead of publishing a circular to shareholders.

SWEF : Starwood European plans wind up

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