An $18 billion follow-on offering from Starwood Real Estate Income Trust Inc, a publicly registered non-traded real estate investment trust sponsored by Starwood Capital Group, has been declared effective by the Securities and Exchange Commission. This is the REIT’s third public offering.
The $18 billion offering is comprised of up to $16 billion in Class D, Class I, Class S and Class T shares and $2 billion in distribution reinvestment plan shares.
Starwood REIT launched its initial $5 billion offering in December 2017 and raised approximately $3.9 billion from investors before closing in June 2021. The first follow-on offering, comprised of $10 billion in shares, launched immediately afterward and raised approximately $8 billion as of mid-July 2022.
The REIT’s investment strategy remains the same and focuses on stabilized, income-oriented commercial real estate properties located in the United States and Europe, and to a lesser extent, real estate debt. Starwood Capital LLC will continue to act as the dealer manager for the offering.
Shares will be sold at the current net asset value per share, plus applicable selling commissions and dealer manager fees. The minimum initial investment for Class T, Class S, and Class D shares is $5,000 and the minimum for Class I shares is $1 million.
Class T shares, available through brokerage and transactional-based accounts, has an NAV per share of $27.64, as of June 30, 2022. Class T shares have a 3 percent maximum selling commission, a 0.5 percent dealer manager fee, and an annual 0.85 percent stockholder servicing fee. The stockholder servicing fee for Class T shares consists of an annual 0.65 percent advisor stockholder servicing fee and a 0.20 percent annual dealer stockholder servicing fee.
Class S shares, available through brokerage and transactional-based accounts, has an NAV per share of $27.63, a 3.5 percent maximum selling commission, and an annual 0.85 percent stockholder servicing fee.
Class D shares, available through fee-based programs, has a NAV per share of $27.20, a 1.5 percent selling commission, and an annual 0.25 percent stockholder servicing fee.
Class I shares, available through fee-based programs and to institutional investors, has a NAV per share of $27.46 and no upfront selling commissions, dealer manager fees, or stockholder servicing fees.
Starwood REIT’s portfolio is comprised of $25.3 billion in real estate assets and $1.9 billion in real estate debt as of June 30, 2022. The REIT’s aggregate NAV is approximately $13.9 billion.