Bank Run On Starwood Too? Real Cap Daily #24
Starwood Capital also had an outsized investors redemption request in November. Shocked? We just talked about BREIT or Blackstone’s REIT in Friday’s video. You can click the link above to jump to that video. This definitely raises more questions about what is happening.
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Going through my morning news readings, Globe Street posted another article citing investor redemption requests exceeding net asset value withdrawal thresholds in November, this time Starwood Capital. Starwood’s REIT has around $15 billion in assets under management. This means they had redemption requests of $480 million of which they honored only 63% of or $302 million. In a note to investors, all remaining requests would have to be refiled in December. Like Blackstone, Starwood also has a 5% quarterly NAV redemption limit. To save you getting out a calculator, that is $750 million per quarter.
SRIET primarily invests in multifamily and industrial warehouses which has returned 10% year to date with a 14% average return. Not bad. Again, why are investors jumping out of a traditional inflation hedge that is doing quite well. What we don’t know from this reporting is who is making the request. Is it Asia again like it was with Blackstone?
There is definitely a trend building and I would love to hear from any reporting on the subject. Is Asia pulling money from the US? Are there other REIT’s out there that saw large redemption requests that were not filled? If there are more of these redemption requests across REITS, how will this impact CRE and is this a sign of things to come?
I would love to see your comments on this story below. What are your thoughts? What questions do you have about what is happening?
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