Starwood REIT taps credit line as it faces withdrawal requests (updated)

Safehold

16/05/2024 15:03

(Changes sourcing, adds context in paragraphs 2-5)
       May 16 (Reuters) - 
    Starwood Real Estate Income Trust has drawn nearly $1.3
billion from its $1.55 billion line of credit, its recent
regulatory filing showed, as it fields withdrawal requests from
investors worried about the troubles in the real estate sector.
  
        In March, shareholders applied to redeem $408 million
from the fund, and 24% of each investor's request was honored,
it said.
  
        Run by Barry Sternlicht-led Starwood Capital Group, the
$10 billion fund invests in real estate including multi-family
and industrial properties, some of which have been battered by
high interest rates and fears of loan defaults.
  
        Turmoil in the real estate industry has also hit
regional banks like New York Community Bancorp  NYCB.N , whose
shares have lost nearly 65% since it reported a surprise
quarterly loss due to its exposure to commercial real estate.
  
        Starwood's move was first 
    reported by the Financial Times, which said that the fund
could run out of credit and cash in the second half of 2024 if
the current pace of redemptions were to continue.
        Starwood Capital did not immediately respond to a
Reuters request for comment. 
  

 (Reporting by Pritam Biswas and Niket Nishant in Bengaluru;
Editing by Anil D'Silva)
 ((Pritam.Biswas@thomsonreuters.com;))