Starwood REIT Registers $5 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 $5 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 $5 billion follow-on offering.
The proposed offering is comprised of up to $4 billion of Class D, Class I, Class S and Class T shares of its common stock and $1 billion in distribution reinvestment plan shares.
The REIT’s investment strategy is to acquire stabilized, income-oriented commercial real estate properties located primarily in the United States. Starwood Capital LLC will 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.
Class T shares, available through brokerage and transactional-based accounts, currently priced to the public at $21.99 each, include 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, are currently priced at $22.13 each, and include a 3.5 percent maximum selling commission and an annual 0.85 percent stockholder servicing fee.
Class D shares, available through fee-based programs, are currently priced at $21.60 each and include an annual 0.25 percent stockholder servicing fee.
Class I shares, available through fee based programs and to institutional investors, are priced at $21.33 each.
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.
Starwood Real Estate Income Trust broke escrow in December 2018 and raised $1.7 billion in investor equity as of mid-October 2020, as well as $44.5 million in distribution reinvestment proceeds. As of the third quarter of 2020, the company’s investments in real estate totaled nearly $3.9 billion and real estate-related securities totaled $228.5 million.
