Sternlicht Says Tightening Starwood REIT Redemption Limits Was ‘Tough’

  • REIT restricted how much money investors can pull out
  • Property owners are grappling with fallout from higher rates

Barry Sternlicht

Photographer: Eva Marie Uzcategui/Bloomberg
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Billionaire Barry Sternlicht said it was “a very tough decision” to further limit withdrawals from Starwood Real Estate Income Trust, the $10 billion fund that found itself stuck between investors’ desire to redeem shares and a distaste for selling at a discount.

“We knew we were going to get a lot of flack,” Sternlicht said Wednesday in an interview on CNBC. “We hope this is going to be a six-month thing.”