Starwood sets sights on more lending power
STARWOOD European Real Estate Finance yesterday launched a share placing with the aim of raising up to £15m in order to bolster its lending power.
The bookbuild for the placing, which is being run by Dexion Capital, is expected to close at 3pm today.
The global real estate firm said it “seeks to raise equity capital for immediate or imminent deployment, in order to minimise cash drag”.
The proceeds of the placing will be used to fund a loan currently in execution, among other transactions, according to yesterday’s announcement.
Starwood also said that, in the short term, it continues to target an annual dividend of seven pence per share.
“The market continues to provide considerable lending opportunities but there is also increased lender competition,” the firm said in a statement yesterday.
As such, Starwood added, from 2016 the company “believes it is prudent” to set its dividend target 0.5 pence lower at 6.5 pence per ordinary share
Shares in Starwood fell by 1.4 per cent yesterday.