In May 2024, Starwood Capital Group's $10 billion real estate fund, known as Starwood Real Estate Income Trust (SREIT), is facing significant liquidity challenges. The fund, managed by Barry Sternlicht, is experiencing a cash crunch due to a high volume of investor redemption requests. Originally, the fund had a $1.55 billion line of credit, which has now dwindled to $275 million. In response, Starwood has tightened redemption limits, restricting investors' ability to withdraw funds to 0.33% of the net asset value (NAV) per month or 1% per quarter, down from the previous rate of 2% per month. This move aims to preserve liquidity and avoid a forced sale of assets in a poor market environment, as reported by FT and WSJ.
Starwood REIT or SREIT amended redemptions to 0.33% of the NAV per month or 1% per quarter from the April monthly rate of 2% per month @CliffordAsness https://t.co/p9sPQnC2GX
Starwood Capital limits investor redemptions by up to 80% in its 10 Billion Property Fund https://t.co/akkFSODF90
Commercial Real Estate is Back: Starwood has a ‘run on the bank’ in its real estate fund. Starwood is gating redemptions - not unlike Blackstone did with BREIT Do you think the NAV is higher or lower than stated? (Lower.) You can find name brand funds like this on legacy… https://t.co/Zj11TVqDh5 https://t.co/1gz2fSfOxP
Starwood Capital limits investor redemptions by up to 80% in its 10 Billion Property Fund! Ouch 🤦♂️ https://t.co/Hf5UKubuSN
Starwood Capital limits redemptions in struggling $10bn property fund https://t.co/wrgjdU1UZK
Some investor "equity extraction" is restricted by Starwood. https://t.co/mLV0yu7JiL
Starwood Capital limits redemptions in struggling $10bn property fund https://t.co/23vs9Br0a4 via @ft https://t.co/23vs9Br0a4 "The fund, known as Sreit, on Thursday told investors it would restrict their liquidity rights by more than 80 per cent, limiting redemptions to 0.33…
"Starwood Capital limits redemptions in struggling $10bn property fund" https://t.co/B4JsaGGC0I https://t.co/varvayu3nR
A $10bn property fund managed by Starwood Capital has significantly limited investor redemptions to preserve cash and avoid selling assets in a poor market. The move comes a week after the FT outlined the fund's dwindling liquidity. https://t.co/JYxJJIXhMD
A $10bn property fund managed by Starwood Capital has significantly limited investor redemptions to preserve cash and avoid selling assets in a poor market. The move comes a week after the FT outlined Starwood's dwindling liquidity. https://t.co/JYxJJIXhMD
This, from the @FT, is further to the post below from a few days ago: "A $10bn property fund managed by Starwood Capital is significantly limiting its investors’ ability to exit their investments as it works to preserve liquidity and stave off a fire sale of real estate assets… https://t.co/Li98SgCiDG
Starwood Real Estate Income Trust, a $10 billion fund managed by Barry Sternlicht’s Starwood Capital, is imposing tighter limits on investors’ ability to pull money to preserve liquidity. https://t.co/gA44FiuAVW
Starwood's SREIT getting gated $STWD (tightening redemptions to preserve liquidity). I thought all these commercial real estate guys at $BX Blackstone etc were saying that commercial RE bottomed in Jan-March 2024. LIES! https://t.co/hB9VPFYV86
$STWD TIGHTENS REDEMPTION LIMITS TO PRESERVE LIQUIDITY
Starwood’s REIT has tightened redemption limits to prevent further liquidity from exiting #MacroEdge
Starwood’s REIT has tightened redemption limits to prevent further liquidity from existing #MacroEdge
STARWOOD REIT TIGHTENS REDEMPTION LIMITS TO PRESERVE LIQUIDITY
Barry Sternlicht just changed the locks on the gate lol! *STARWOOD REIT TIGHTENS REDEMPTION LIMITS TO PRESERVE LIQUIDITY
*STARWOOD REIT TIGHTENS REDEMPTION LIMITS TO PRESERVE LIQUIDITY $STWD
A $10 Billion Real-Estate FundIs Bleeding Cash and Running Out of Options https://t.co/PaspIuEL9f
From the @wsj article, “A $10 Billion Real-Estate Fund Is Bleeding Cash and Running Out of Options.” The liquidity challenge facing this fund is attracting attention well beyond the investors in the fund and in the sector as a whole. Its remedial actions — namely, the mix… https://t.co/uDarbgiIyS
Ouch. A giant commercial real-estate fund is scrambling to escape a looming cash crunch caused by the long line of investors who want their money back https://t.co/eMkicso3HA via @WSJ
A $10 BILLION REAL-ESTATE FUND IS BLEEDING CASH AND RUNNING OUT OF OPTIONS (WSJ) A giant commercial real-estate fund is scrambling to escape a looming cash crunch caused by the long line of investors who want their money back. The $10 billion fund from Starwood Capital Group… https://t.co/BqoTxrBxZL
A giant commercial real-estate fund is scrambling to escape a looming cash crunch caused by the long line of investors who want their money back https://t.co/wz5Ja6gYlM https://t.co/wz5Ja6gYlM
A giant commercial real-estate fund is scrambling to escape a looming cash crunch caused by the long line of investors who want their money back https://t.co/L3mCCxsCAF via @WSJ @petergrantwsj
The Sreit fund is struggling -"The line has $275 million of capacity, down from its original size of $1.55 billion." The strategy? Hope/pray rates dramatically shift down in Q3-4. A $10 Billion Real-Estate Fund Is Bleeding Cash and Running Out of Options https://t.co/kRBJ8Bfayo
A $10 Billion Real-Estate Fund Is Bleeding Cash and Running Out of Options https://t.co/oXxdZy7nHo