Starwood Deploys $131M in Capital

The capital was deployed via a pair of transactions: a $72.5 million discounted purchase of a $90.6 million participation in a B note secured by four resorts in the United Kingdom and the origination of a $59 million first mortgage loan on a 38-story office building in Chicago's central business district.

May 25, 2010
By Allison Landa, News Editor

Starwood Property Trust has deployed $131.4 million in capital via a pair of transactions. These were a $72.5 million discounted purchase of a $90.6 million participation in a B note secured by four resorts in the United Kingdom and the origination of a $59 million first mortgage loan on a 38-story office building in Chicago’s central business district.

“These new investments are consistent with our investment philosophy of deploying capital in a disciplined manner which will provide predictable growth and safety in our cash flow stream,” Starwood Capital Group head of real estate fixed income Leo Huang said when announcing the news. “We remain confident that we will be able to deploy additional capital at attractive rates of return as spreads widen due to both the uncertainty in the global financial markets and as an increasing volume of loan restructurings and maturities hit the market.”

The company says it has fully deployed the equity raised in its IPO and has made investments totaling approximately $981.2 million. It said Wednesday that it has $220.4 million in cash on hand or available through term loans from Wells Fargo Bank.

Last month, Starwood landed a $1.5 billion senior credit facility courtesy of a 24-bank syndicate. It is a multi-currency package consisting of euros, pounds sterling, Australian dollars, yen, Canadian dollars, Mexican pesos and other permitted Libor-based currencies.