Starwood Capital launches $5b nontraded REIT

Starwood Capital Group has plans to launch a $5 billion nontraded REIT named Starwood Real Estate Income Trust, which filed with the U.S. Securities and Exchange Commission for a proposed initial public offering of class D, class I, class S and class T shares of its common stock.

Starwood REIT, which is externally managed by an affiliate of Starwood Capital Group, is offering up to $4 billion in shares of its common stock in its primary offering, and up to $1 billion in shares of its common stock pursuant to its distribution reinvestment plan.

Starwood REIT will be a diversified vehicle focusing on acquiring stabilized, income-oriented commercial real estate in both primary and secondary markets in the United States, with an ability to also invest in Europe. It intends to qualify as a real estate investment trust for federal income tax purposes. Shares will be offered on a continuous basis at a price generally equal to the net asset value per share of each class of common stock, updated monthly.

Starwood Capital LLC will act as the dealer manager.