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Starwood REIT’s $10 Billion Follow-On Offering Declared Effective

The $10 billion follow-on offering for 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.

The $10 billion follow-on offering for 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.

The offering is comprised of up to $8 billion of Class D, Class I, Class S and Class T shares of its common stock and $2 billion in distribution reinvestment plan shares. The REIT doubled the initially proposed offering size after registering $5 billion in shares in November 2020.

Starwood REIT broke escrow in December 2018 and raised $3.3 billion in investor equity as of mid-May 2021, as well as $78.1 million in distribution reinvestment proceeds.

The REIT will maintain its investment strategy of acquiring stabilized, income-oriented commercial real estate properties located primarily in the United States, and to a lesser extent, real estate debt. 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, are currently priced to the public at $22.68 each, and include selling commissions of up to 3 percent, 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 nearly $22.80 each and include a selling commission of up to 3.5 percent and an annual 0.85 percent stockholder servicing fee.

Class D shares, available through fee-based programs, are currently priced at $22.24 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 $21.97 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.

As of the first quarter of 2021, Starwood REIT’s $5.9 billion investment portfolio included 147 properties, one joint venture real estate investment, and 56 positions in real estate debt, consisting of loans secured by real estate and real estate-related securities.

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