Contact Us

Starwood Raises $10B For Latest Distressed Properties Fund


Starwood Capital Group has closed on its latest fund, Starwood Distressed Opportunity Fund XII, or SOF XII, with capital commitments in excess of $10B. That tops its previous fund, SOF XI, which raised $7.6B.

As the name suggests, the fund will focus on opportunistic real estate deals. Starwood Capital Group Chairman and CEO Barry Sternlicht said in a statement that there is a "robust pipeline" of such investment opportunities, with over 35% of the fund already deployed.

The deals already closed by the fund include investments in Australia, the European Union, Japan, the U.K. and the U.S. Thus far, SOF XII has bought a U.S. single-family rental home platform of more than 4,500 houses and has acquired Extended Stay America, an owner and operator of economy extended-stay hotels, with investment partner Blackstone.

In the U.K., the fund has privatized RDI REIT, which owns industrial and other logistics assets in Europe, and the fund acquired a portfolio of office properties in Tokyo on an off-market basis during coronavirus uncertainty. 

Starwood's various real estate investment vehicles, including Starwood Property Trust, Starwood Real Estate Income Trust and Starwood Energy Group, have been aggressive in their acquisitions, including a bidding war with Equity Commonwealth to buy Monmouth Real Estate Investment Corp. that hasn't come to a conclusion yet.