Real Estate
Starwood’s $10 Billion REIT Turns to Survival Mode as Real Estate Pain Lingers
- New restrictions are expected to last six months to a year
- Sternlicht’s Starwood will reduce its management fees
Barry Sternlicht
Photographer: Victor J. Blue/BloombergThis article is for subscribers only.
Billionaire Barry Sternlicht is convinced the real estate market will rebound with just a bit more time. Many investors in his $10 billion Starwood Real Estate Income Trust aren’t so sure — and want their money back now.
That tension, between Starwood Capital Group’s chief executive who hates the idea of selling properties at their lows and investors who hate the idea of having their money trapped, reached a tipping point Thursday. The vehicle, known as SREIT, took the drastic step of further tightening limits on shareholders’ ability to pull money, in an effort to preserve liquidity and stave off asset sales.