Starwood has become the second nontraded real estate investment trust to limit investor withdrawals after a surge in November requests exceeded monthly limits.

In a letter to its investors that was forwarded to Barron's, the $15B Starwood Real Estate Income Trust, also known as SREIT, said it fulfilled 63% of investor redemption requests in November after the repurchase requests exceeded a 2% limit, reaching 3.2% of net asset value (VAV).

Last week, Blackstone, the largest nontraded REIT, also disclosed that it was limiting redemptions to investors to tamp down a stampede to the exits. Like Blackstone, SREIT also has a quarterly limit on redemptions of 5% NAV.

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.