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Starwood REIT Appoints BlackRock as Sub-Advisor

Starwood REIT Advisors LLC, the external advisor to non-traded REIT Starwood Real Estate Income Trust, has appointed BlackRock Financial Management Inc. as its sub-advisor.

Starwood REIT Advisors LLC, the external advisor to non-traded REIT Starwood Real Estate Income Trust, has appointed BlackRock Financial Management Inc. as its sub-advisor. Blackrock’s fee will be paid entirely by the advisor and not by the company.

Under the new agreement, BlackRock will act as the investment manager for the REIT’s portfolio of real estate-related securities and other investments that provide liquidity for the company’s share repurchase plan, cash management and other purposes, the company said. The company’s securities portfolio may comprise up to 20 percent of its assets.

Starwood REIT’s $5 billion offering was declared effective by the SEC in January 2018. The REIT plans to focus on acquiring stabilized, income-oriented commercial real estate and debt secured by commercial real estate located in the United States, and possibly Europe.

In July 2017, Starwood REIT was capitalized with a $200,000 investment by Starwood Real Estate Income Holdings L.P. in exchange for 10,000 Class I shares. Until the release of proceeds from escrow, the per share purchase price of its shares will be $20.00 each. Following the release, the share price will generally equal the company’s prior month’s net asset value.

Starwood REIT plans to purchase two multifamily properties from an affiliate for a combined $82 million once its offering proceeds are released from escrow.

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