Home Alts News Starwood REIT Registers $18 Billion Follow-On Offering

Starwood REIT Registers $18 Billion Follow-On Offering

Starwood Real Estate Income Trust Inc, a publicly registered non-traded real estate investment trust sponsored by Starwood Capital Group, has registered a second follow-on offering with the Securities and Exchange Commission.

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Starwood Real Estate Income Trust Inc, a publicly registered non-traded real estate investment trust sponsored by Starwood Capital Group, has registered a second follow-on offering with the Securities and Exchange Commission.

According to a pre-effective registration statement, the offering will be comprised of up to $16 billion in Class D, Class I, Class S and Class T shares of common stock 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 follow-on offering, comprised of $10 billion in shares, launched immediately afterward and raised approximately $5.8 billion as of December 31, 2021.

The REIT’s investment strategy is expected to remain the same and focus on stabilized, income-oriented commercial real estate properties located primarily in the United States, and to a lesser extent, Europe. The REIT may also invest in 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, have a NAV per share of $26.05, as of December 2021. 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, have a NAV per share of $26.09 each, as well as a 3.5 percent maximum selling commission, and an annual 0.85 percent stockholder servicing fee.

Class D shares, available through fee-based programs, have a NAV per share of $25.68 each, 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, have a NAV per share of $25.94 each and no upfront selling commissions, dealer manager fees or stockholder servicing fees.

Starwood REIT’s portfolio is comprised of $19.6 billion in real estate assets and $954.1 million in real estate debt as of December 31, 2021. The REIT’s aggregate NAV is approximately $9 billion.

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