Private equity firm Starwood Capital Group is launching a nontraded real estate investment trust that will invest primarily in stabilized, income-oriented commercial real estate and debt secured by commercial real estate in the U.S.
The newly formed entity, Starwood Real Estate Income Trust Inc., filed for a best-efforts offering of up to $5.00 billion of common shares. It is offering up to $4.00 billion of shares in its primary offering and up to $1.00 billion of shares under its distribution reinvestment plan. The common shares to be offered will be any combination of class T, S, D and I shares, and the per-share price in the primary offering will be $20.00, plus applicable upfront selling commissions and dealer manager fees.
Starwood Real Estate, which is externally managed by Starwood Capital Group Holdings LP affiliate Starwood REIT Advisors LLC, will seek to qualify as a REIT but will not list its common shares for trading on an exchange or other trading market.
The company will use the net proceeds from the offering for investments and general corporate purposes. Aside from investing in U.S. commercial real estate and debt secured by commercial real estate, the company may also acquire properties and debt investments secured by properties overseas, with a focus on European investments.
The company will only invest in real estate-related debt to the extent that such investments are not within the investment strategy of Starwood Property Trust Inc. and any future other Starwood accounts that may target such assets, according to a filing.
Starwood Capital LLC is the dealer manager for the offering.