Starwood Property Trust’s $10 billion real estate lending fund is drawing on its credit line as investors redeem their money, according to people familiar with the matter.
The fund, known as Starwood Distressed Opportunity Fund X, has been hit by redemption requests since the beginning of the year, the people said. The fund has drawn down about $1 billion on its $1.5 billion credit facility, the people said, asking not to be identified because the information is private.
Starwood is the latest real estate investment firm to face redemption requests from its investors. The trend has been driven by rising interest rates, which have made it more expensive for funds to borrow money.
Starwood declined to comment on the fund’s redemptions or the draw on its credit line. The company said in a statement that it maintains a strong liquidity position and access to capital through a variety of sources. The statement did not provide details on the company’s credit line.
Starwood Distressed Opportunity Fund X is a closed-end fund that invests in distressed real estate assets. The fund has a target size of $10 billion and a five-year investment period.
The fund has been hit by redemption requests since the beginning of the year, as investors have sought to withdraw their money in the face of rising interest rates. The fund’s net asset value has declined by about 10% since the beginning of the year, according to the people familiar with the matter.
Starwood is not the only real estate investment firm to face redemption requests from its investors. Other firms, such as Blackstone Group Inc. and Apollo Global Management Inc., have also been hit by redemptions.
The trend has been driven by rising interest rates, which have made it more expensive for funds to borrow money. As a result, funds have been forced to sell assets to meet redemption requests.
The redemptions have put pressure on real estate prices, as funds have been forced to sell assets at a discount. The trend is expected to continue as interest rates continue to rise.
- Starwood Property Trust’s $10 billion real estate lending fund is drawing on its credit line as investors redeem their money.
- The fund has been hit by redemption requests since the beginning of the year.
- The fund has drawn down about $1 billion on its $1.5 billion credit facility.
- Starwood is not the only real estate investment firm to face redemption requests from its investors.
- The trend has been driven by rising interest rates.
- The redemptions have put pressure on real estate prices.
Kind regards,
E. Thompson
